Superior Energy Services, an oil field services company based in New Orleans, agreed to buy a rival, Complete Production Services, for about $2.7 billion.
Under the terms of the agreement, investors in Complete, based in Houston, will receive 0.945 of Superior common stock and $7 in cash. That is about 29 above Complete’s two-month average stock price.
“The combination of Superior and Complete creates a top-tier diversified oil field services company with the products, technologies and talented people that are critical to helping our customers create value, particularly in unconventional fields in North America,” David Dunlap, Superior’s chief executive, said in a statement. “Together we will have enhanced positions in large sectors for key products and services that are high in usage intensity and deemed critical by our customers during their drilling, completion and production process.”
The deal comes as declining oil prices and concern over the global economy have put pressure on energy-related stocks. Shares of Superior have dropped to a recent $27.41 from $43 in August. Complete has fallen even further, and is off 50 percent in the same time period.
The takeover is expected to be completed by the end of the year, with Superior’s shareholders owning about 52 percent of the merged business.
Greenhill and JPMorgan advised Superior on the acquisition, while Jones, Walker, Waechter, Poitevent, Carrere & Denegre served as legal counsel. Complete worked with Credit Suisse Securities and Latham & Watkins acted as legal counsel.
