Integra Group announces that it has closed the deal on acquisition of SIAM Company (SIAM) from Siberia, headquartered in Tomsk, a Russian oilfield services company specializing in wireline and slickline services, production logging and testing.
Rumors of the deal were no longer rumors as early as June 2011. It happened when Siam Company announced its intention to withdraw from the number of residents of Tomsk’s FEZ.
SIAM decision was incomprehensible, especially since both the state and Siam to meet the conditions of the agreement on technology-innovative activity in the FEZ.
"It’s company’s internal reason to decide to withdraw from the project", - said K. Kaminsky, CEO of the FEZ.
Siam has become less noticeable after 2008, may be due to the crisis.
There are fewer publications in the press, news of reasons, which indicated that reducing the advertising budget. Although it famous work with "neftegazovoye hozyaystvo» -a conference in Tomsk, the company held. Perhaps the tradition will continue now the Integra, but not here and not about that.
Until 2009, SIAM updated product line of equipment and offering new solutions to traditional production equipment (dynamograph, pressure gauges ets), and the new mechanized equipment - winches with electric drive.
The Company has been acquired on a cash free and debt free basis.
Absorption is beneficial to both parties.
Tired SIAM gets a reliable arm of Integra. Integra, from the other side, needs to rapidly build up the muscles, if the company wants reinforces the Company’s position as the leading Russian provider of complex OFS solutions at all stages of oilfield development.
Integra also has new opportunities for further expansion of the production line in a segment of technology services. However, Integra will need to increase its production, as well as, for example, GMS.
Eurasia, GMS, Generation, and others - the competition is escalating, and companies are forced to either merge or absorb the other.
Therefore, the Integra is not constant over the price. Integra paid RR2.2 bln (US$71 mln) which was financed by a combination of internal cash resources and use of existing debt facilities.
You can see, it’s a lot of money for company from Tomsk. SIAM’s results of operations will be consolidated into the Group’s financial statements starting from 4Q 2011.