Dresser Offers to Buy Smith
DALLAS — Dresser Industries Inc., an oil services company, said Wednesday that it has offered to purchase Smith International Inc., a manufacturer of oil and gas drilling equipment, in a deal valued at $567 million.
Dresser said the acquisition would broaden its base and prepare the company for resurgence in the petroleum business.
“This is a recognition that the bust is behind us and we’re going to move,” said Dresser spokesman Herb Ryan.
Dresser has offered $14.25 in cash plus a warrant for each of Smith’s 32.4 million shares, or about $462 million.
Ryan also said Dresser would assume about $106 million in Smith’s debt, boosting the value of the deal to about $567 million.
The board of Houston-based Smith International has approved the merger.
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