Blackstone to acquire oil services firm Ulterra in a $700 million deal

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Ulterra is being bought by Blackstone from American Securities, a leading U.S. private equity firm.

Blackstone Group, an American multinational corporation has decided to acquire Ulterra Drilling Technologies, a manufacturer of drill bits and downhole tools for the oil and gas industry, for  around $700 million.

Ulterra has around 8 percent of the global market share

According to data from oilfield consultancy Spears & Associates, Ulterra had the fifth-largest share of the global drill bits industry in 2017, bringing in about $200 million in revenue, or 8 percent of the global market share.

Ulterra is one of a host of oilfield services firms, which have been shopped around in recent times, as increased drilling activity and higher oil prices together encourage owners – many of them buyout houses – to seek a sale.

Ulterra was acquired by American Securities

Blackstone is buying the firm from fellow private equity house American Securities, which itself has acquired the business in 2016. Blackstone and American Securities declined to comment on the deal and Ulterra did not respond to a request for comment.

Reportedly, the acquisition of Ulterra is getting support from a debt package, which is currently being pre-marketed ahead of a formal launch.

According to Spears & Associates, Schlumberger, headquartered in Houston, Texas, has the largest share of the global drill bit market, with an estimated $787 million in revenue last year, followed by General Electric’s Baker Hughes, Halliburton, and National Oilwell Varco.

Blackstone acquired the NEC Group

Recently Blackstone announced the acquisition of the National Exhibition Centre Group, a leading live events venue operator in the UK, from LDC, the private equity arm of Lloyds Banking Group.

Founded in 1976, the National Exhibition Centre hosts many of the largest exhibitions in the UK, including Crufts, the internationally acclaimed dog show, Spring Fair, the UK’s largest exhibition, and Grand Designs Live.

Paul Thandi, Chief Executive, NEC Group, stated, “Blackstone’s track record in scaling companies, sector knowledge and unrivalled real estate capabilities, make them the ideal new partner for NEC Group to realize the next phase of our ambitious growth strategy. All of our teams and partners look forward to working closely with the world class team as we embark on becoming the definitive name in events and exhibitions, while continuing to focus on innovations and new customer experience offerings for all our customer groups.”

Recently, Blackstone has acquired Clarus, a leading global life sciences investment firm, to tap life sciences industry.



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