© 2015 The Texas Lawbook.
By Natalie Posgate
(Aug. 26) – Schlumberger, the world’s largest oilfield services company, announced Wednesday that it is acquiring Houston-based Cameron International Corporation in a $14.8 billion all-stock transaction.
Though both Schlumberger and Cameron have headquarters or primary offices in Houston, Baker Botts was the only firm involved in the deal with a Texas-based team.
David Kirkland, the chair of Baker Botts’ firmwide corporate practice, and fellow Houston partner Tull Florey led the deal for Schlumberger, which has primary offices in Paris, Houston, London and The Hague and reported $48.6 billion in 2014 revenues.
Kirkland and Florey received assistance from a predominantly Houston-based deal team, which included partner A.J. Ericksen and associates Travis Wofford, Daniel Gottschalk and Christopher Marshall for corporate matters; partner Derek Green and associate Jon Lobb for tax matters; partner Rob Fowler for employee benefits matters; and Austin partner Derek McDonald for environmental matters.
Schlumberger and Cameron are not new to doing business deals together. In November 2012, they formed a multi-billion dollar joint venture called OneSubSea, which provides products, systems and services for companies in the deep-water offshore drilling market. Kirkland advised Schlumberger in that deal as well.
Florey, who heads Baker Bott’s Houston corporate department, advised Schlumberger in February 2010 in its $11 billion acquisition of Houston area-based Smith International, which provides products to E&P companies.
Gibson, Dunn & Crutcher lawyers from New York, Washington, D.C. and Brussels served as Schlumberger’s global antitrust/competition counsel for the deal.
New York powerhouse Cravath, Swaine & Moore represented Cameron, which reported more than $10 billion in revenues for last year.
In a statement, Schlumberger said the deal, which is expected to close in the first quarter of 2016, anticipates to realize pretax synergies of approximately $400 million and $600 million in the first and second year, respectively.
The synergies are primarily related to reducing operating costs, streamlining supply chains and improving manufacturing processes – with a growing component of revenue synergies in the second year and beyond.
Goldman, Sachs & Co. served as Schlumberger’s financial advisor in the deal. Credit Suisse provided financial advice to Cameron.
The deal completion is subject to Cameron shareholders’ approval, regulatory approvals and other customary closing conditions.
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