Transocean announced Monday it has acquired Valaris Ltd. for about $5.8 billion in an all-stock transaction that creates an offshore drilling behemoth with 33 ultra-deepwater drillships, nine semisubmersibles and 31 modern jackups.
Skadden advised Valaris with a team led by Eric Otness in Houston and Stephen Arcano and Max Troper in New York. Davor Vukadin is GC at Valaris, and Brady Long is Transocean’s chief legal officer.
Transocean – incorporated in Switzerland with primary offices in Houston – will own about 53 percent of the combined company with Valaris – incorporated in Bermuda with primary offices in Houston – holding the other 47 percent. The merged entity has an enterprise value of about $17 billion and an estimated market capitalization of $12.3 billion, according to the companies.
“The powerful combination is well-timed to capitalize on an emerging, multi-year offshore drilling upcycle,” Transocean CEO Keelan Adamson said. “Investors and our global customers will benefit from our expanded fleet of best-in-class, high-specification rigs.”
Valaris CEO Anton Dibowitz said the new company “is capable of operating any rig at any water depth in any offshore environment around the world.”
The Skadden, Arps, Slate, Meagher & Flom team included New York Partners Kenneth Schwartz and Erica Schohn with Thomas Wood advising from Washington, D.C.
Transocean’s lead financial advisor is Evercore, and the company uses British-American firm Hogan Lovells, Swiss firm Homburger, and Bermuda-based Appleby as outside legal counsel.
Goldman Sachs is the financial advisor to Valaris, which uses Swiss law firm Lenz & Staehelin and Conyers Dill & Pearman of Bermuda as outside legal counsel.