WHD - Cactus to buy FlexSteel Technologies in $521M deal

Cactus ( NYSE: WHD ) said Tuesday it agreed to acquire FlexSteel Technologies Holdings, a manufacturer of spoolable pipe technologies primarily purchased by customers during the production phases of a well's lifecycle, for $621M up front plus a potential future earn-out payment of up to $75M to be paid next year if certain revenue growth targets are met.

The acquisition comes through a merger with FlexSteel's holding company, HighRidge Resources, and newly formed Cactus ( WHD ) subsidiary Atlas Merger Sub LLC.

Current FlexSteel President and CEO Thirucherai Sathyanarayanan will continue to lead the business, which generated ~$265M in revenues for the nine months ended September 30.

"This acquisition enhances Cactus' position as a premier manufacturer of specialized technologies delivered directly to our industry's end-users," Cactus ( WHD ) President and CEO Scott Bender said.

Cactus ( WHD ) reported better than expected earnings and revenues in its most recent quarterly results .

For further details see: