Cameron Finalizes Acquisition Of LeTourneau
That’s how switchboard operators are answering the phone at LeTourneau for now, as its integration into Cameron International (formerly known as Cooper Cameron Corporation) became complete in the fourth quarter of 2011.
The sign on the building outside said only “Cameron,” the operator said. The employees have been receiving internal communications on the integration, which has been covered by financial and business publications, but the company has not yet issued a press release on the final naming. For now, LeTourneau is keeping its own Web site, with a special banner link to a Web site called www.CameronAcquiresLeTourneauDrilling.com.
The integration culminates a busy year for Le Tourneau. It was bought by Milwaukee-based Joy Global Inc. in June 2011 from its previous owners, Rowan Companies. Joy Global then turned around and sold LeTourneau’s drilling products division to Cameron for $325 million in cash, saying it wanted to concentrate on its core mining business.
In October, Cameron chairman and chief executive officer Jack Moore said, “We are pleased to add LeTourneau Technologies’ talented people and its products to the Cameron organization, and we look forward to moving ahead with the integration process. The addition of LeTourneau’s portfolio of drilling equipment and rig components adds to our existing product offering and enhances the growth opportunities for our drilling systems platform.”
Credit Suisse Securities LLC (USA) advised Cameron in the deal, with Porter Hedges LLP serving as legal adviser.
Houston-based Cameron provides “flow equipment products, systems and services to worldwide oil, gas and process industries,” according to its Web site. Among other things, it is one of the world’s largest makers of oil well blowout prevention devices, including the one that allegedly failed in the Deepwater Horizon spill. Cameron was sued by BP in April for that failure, along with Halliburton and Transocean. All three companies filed counterclaims. On December 16, Cameron announced a settlement with BP, according to which Cameron paid BP $250 million and each agreed to indemnify the other on all future claims arising from the Deepwater Horizon incident.
According to LeTourneau’s Web site, its power systems equipment is used by every major American dredging contractor. LeTourneau Power Systems was the turnkey manufacturer of the Dredge Goetz, which it calls “the most advanced dredge on the Mississippi River.” The Goetz was delivered to the Corps of Engineers in 2005.
In addition, LeTourneau Power Systems provides power and control systems to the sand and gravel industry.
The LeTourneau Power Systems dredge-powering product line includes SCR drives and DC motors, AC drives and AC motors, and the unique SR power systems. LeTourneau Power Systems can couple these systems with its switchgear and engine/generator controls, along with advanced control systems.