HOUSTON, Texas (February 11, 2010)... Smith International, Inc. (NYSE: SII) announced today that it has agreed to acquire @Balance, B.V. from Shell Technology Ventures Fund 1 B.V.
Thursday, February 11, 2010
Contact: Shawn Housley
Director Investor Relations
(281) 443-3370
SMITH INTERNATIONAL, INC. AGREES TO ACQUIRE AT BALANCE
HOUSTON, Texas (February 11, 2010)... Smith International, Inc. (NYSE: SII) announced today that it has agreed to acquire @Balance, B.V. from Shell Technology Ventures Fund 1 B.V. At Balance, winner of Harts 2008 Special Meritorious Award for Engineering Innovation, provides managed pressure drilling (MPD) services using its patented technology.
We are excited about the managed pressure drilling growth opportunities and, specifically, the technologies and capabilities of At Balance to address this market, stated John Yearwood, CEO of Smith International. Whether providing wellbore stability while drilling through depleted zones, managing high-pressure/high-temperature environments or providing the service as part of our drilling optimization offering, we believe that managed pressure drilling is yet another value enhancing technology that fits with our vision to provide top-quartile drilling performance for our customers. Today, At Balances primary markets are outside of North America and in deepwater drilling applications, key markets of expected secular growth that are aligned with Smiths strategic objectives.
After having been involved with this company for two years, we have seen the talented management and operations from up close. Through the combination of our rotating control devices, M-I SWACOs Super Auto Chokes and the technology of At Balance, our customers have and will continue to enjoy the benefit of a complete managed pressure drilling package, Bryan Dudman, EVP and President of Smith Drilling & Evaluation, added. By combining our technologies and services to dynamically control bottomhole pressure throughout the drilling process, we can expand the capabilities of our customers by eliminating potentially critical well control events that cause lost circulation, wellbore instability, stuck pipe and formation damage; all situations which are costly and potentially dangerous.
John Samuell, President of At Balance, stated, The acquisition of At Balance by Smith is recognition of our industry leading automated MPD control technology. This transaction provides At Balance direct access to Smiths worldwide business development organization and a global platform to expand our market position in additional geographic areas. It will also strengthen our already closely aligned product development efforts to ensure continued delivery of innovative drilling optimization technology.
Smith acquired a minority interest in At Balance in late 2007 and increased its stake to 35% during 2009. While the transaction is subject to completion of a final agreement, the Company anticipates concluding the acquisition of the remaining 65% interest during the first quarter of this year. No financial terms were disclosed.
@Balance B.V., based in The Netherlands, is a leading supplier of Automated Pressure DrillingTM services and exclusive provider of the Dynamic Annular Pressure ControlTM system, an award winning product for real-time pressure drilling.
Shell Technology Ventures Fund 1 B.V. (the Fund), managed by Kenda Capital B.V., (Kenda Capital) is an investment fund focused on accelerating the development and deployment of new technologies across the energy sector. Kenda Capital and the Fund maintain a unique technology relationship with the Royal Dutch Shell. Major investors in the Fund are Royal Dutch Shell, Coller Capital, and the Abu Dhabi Investment Authority.
Smith International, Inc. is a leading supplier of premium products and services to the oil and gas exploration and production industry. The Company employs over 21,000 full-time personnel and operates in over 80 countries around the world.
This material includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections, or other statements other than statements of historical fact, are forward-looking statements. Similarly, statements that describe our future plans, objectives or goals or future revenues or other financial metrics are also forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to, among other things, risk factors that are discussed on Forms 10-Q and in the Companys Form 10-K for the fiscal year ended December 31, 2008 and other documents filed with the Commission. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any of them in light of new information, future events or otherwise.