Schoeller-Bleckmann Oilfield Equipment AG

EANS-Adhoc: Schoeller-Bleckmann Oilfield Equipment AG
SBO acquires US company "Downhole Technology LLC" (Downhole Technology)

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Mergers - Acquisitions - Takeovers
01.04.2016


AD HOC-NEWS

SBO acquires US company "Downhole Technology LLC" (Downhole Technology)

- SBO expands its well completion business as announced
- Downhole Technology offers high growth potential
- Financing through existing liquid funds

Ternitz, 1 April 2016 - Schoeller-Bleckmann Oilfield Equipment AG (SBO) acquires
68% (rounded) of the US oilfield equipment provider "Downhole Technology LLC"
(Downhole Technology).

Following the acquisition of Resource Well Completion Technologies Inc.
(Resource) in November 2014, SBO is expanding its well completion business by
integrating Downhole Technology into the business segment "Oilfield Equipment".

Signing and closing of the transaction took place today. The purchase price for
the 68% share is MUSD 103 (rounded). The remaining 32% are held by the company
founder and key managers. The agreement includes an option to acquire the
remaining 32% in Downhole Technology after three years.

Downhole Technology is based in Houston, US, and was, prior to Closing, owned by
the company founder, key management and a private equity company. The company is
a technologically leading provider of patent protected "composite frac plugs"
for completion of oil and gas wells. In the past fiscal year, which ended on
December 31, 2015, Downhole Technology generated sales revenues of approx. MUSD
43 with a workforce of 160.

SBO is financing the purchase price through existing liquid funds. After payment
of the purchase price for the 68% share, SBO's profoundly strong balance sheet
structure will be maintained as before, with the gearing ratio standing below
15% (based on equity at YE: MEUR 450; Gearing at YE 2015: -5.8 %). The company
name Downhole Technology and the current management will be retained. From now
on, Downhole Technology will benefit from SBO's global presence and financial
and operating strength, allowing for substantially better use of the significant
growth potential offered by the business field well completion.

Gerald Grohmann, SBO's Chief Executive Officer: "With this acquisition, we are
continuing the corporate strategy we have announced: We are broadening our
portfolio in the attractive product area of well completion. This helps us to
extend our range of products, know-how, but also our customer base by creating
added-value both for our company and our shareholders. Downhole Technology is an
outstanding business with an innovative workforce fitting in well with the
corporate culture of SBO."

About well completion und the products of Downhole Technology

In the past, SBO focused on components for directional drilling. After the well
has been drilled, the next step is to prepare the well for the production of oil
and gas, a procedure called well completion. Since the acquisition of Resource
in November 2014, SBO is also active in this area. While Resource provides
high-tech sliding sleeve equipment for well completion, Downhole Technology
offers plug-and-perforation equipment for such operations.

Downhole Technology is a technologically leading provider of "composite frac
plugs". The patented design, the manufacturing know-how and the high quality
standard of its products enable completion of the well to be done faster, more
efficiently and more securely. As a consequence, Downhole Technology has reached
an outstanding acceptance on the market. With Downhole Technology and Resource,
SBO is now in a position to offer a wide range of tight formation completion
tools.

About SBO

Schoeller-Bleckmann Oilfield Equipment AG is the global market leader in
high-precision components and a leading supplier of oilfield equipment for the
oilfield service industry. The business focus is on non-magnetic drillstring
components and high-tech downhole tools for drilling and completing directional
and horizontal wells. As of 31 December 2015, SBO employed a workforce of 1,135
worldwide (31 December 2014: 1,720), thereof 376 in Ternitz/Austria and 399 in
North America (including Mexico).


Further inquiry note:
Andreas Boecskoer, Investor Relations           
Schoeller-Bleckmann Oilfield Equipment AG        
A-2630 Ternitz, Hauptstraße 2                   
Phone: +43 2630/315 ext 252, fax ext 101                 
e-mail: a.boecskoer@sbo.co.at

end of announcement                               euro adhoc 
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issuer:      Schoeller-Bleckmann Oilfield Equipment AG
             Hauptstrasse 2
             A-2630 Ternitz
phone:       02630/315110
FAX:         02630/315101
mail:     sboe@sbo.co.at
WWW:      http://www.sbo.at
sector:      Oil & Gas - Upstream activities
ISIN:        AT0000946652
indexes:     WBI, ATX Prime, ATX
stockmarkets: official market: Wien 
language:   English
 

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