HOUSTON, Dec 20, 2010 (GlobeNewswire via COMTEX) --
Oil States International, Inc. (NYSE:OIS) announced today that its subsidiary, PTI Group USA, LLC, under the terms of a definitive asset purchase agreement purchased all of the operating assets of Mountain West Oilfield Service and Supplies, Inc. and Ufford Leasing ("Mountain West"). Headquartered in Vernal, Utah, with operations in the Rockies and the Bakken Shale region, Mountain West provides remote site workforce accommodations to the oil and gas industry. For the twelve months ended November 30, 2010, Mountain West generated approximately $24 million of revenues. Total consideration consisted of $43 million in cash, an earnout agreement and a $4 million promissory note. Cash consideration was funded under Oil States credit facility. Any payments under the earnout agreement will be determined by the EBITDA generated by the business during the three years subsequent to the transaction closing date.
"The addition of Mountain West complements and expands our existing accommodations offering in growing markets in the United States," stated Cindy B. Taylor, Oil States' president and chief executive officer. "We are excited about the addition of the Mountain West team and look forward to for their future contributions to our accommodations business."
Oil States International, Inc. is a diversified oilfield services company. With locations around the world, Oil States is a leading supplier of a broad range of services to the oil and gas industry, including remote site accommodations, production-related rental tools, oil country tubular goods distribution and land drilling services as well as a leading manufacturer of products for deepwater production facilities and subsea pipelines. Oil States is publicly traded on the New York Stock Exchange under the symbol OIS. For more information on the Company, please visit Oil States International's website at http://www.oilstatesintl.com.
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The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included therein will be based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the "Business" and "Risk Factor" sections of the Form 10-K for the year ended December 31, 2009 filed by Oil States with the SEC on February 22, 2010 and the "Risk Factor" section of the Form 10-Q for the period ended September 30, 2010 filed by Oil States with the SEC on November 5, 2010. In addition, the previously announced acquisition of the MAC Services Group Limited includes additional risks and uncertainties including, among other things, the risk that the Scheme of Arrangement is delayed or does not close, including due to the failure to obtain governmental approvals or to achieve shareholder approval or other closing conditions, the risk that the businesses will not be integrated successfully, the risk that any synergies or other benefits from the combination may not be fully realized or may take longer to realize than expected, and disruption from the combination making it more difficult to maintain relationships with customers, employees or suppliers.
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SOURCE: Oil States International, Inc.
CONTACT: Oil States International, Inc.
Bradley J. Dodson