ORANGE — Varco International Inc. said Wednesday that it had acquired the assets of the Totco division of Exlog Inc., a subsidiary of Baker Hughes Inc., in a stock and cash transaction valued at more than $41 million.
The deal calls for Varco, Orange-based maker of oil and gas drilling equipment, to put up slightly more than 2.3 million shares of its common stock and about $20 million in cash. With Varco's stock closing at $9.25 Wednesday, up 25 cents, the stock portion was worth an estimated $21.7 million.
The Totco division makes, sells and rents oil and gas drilling equipment. For the year ending Sept. 30, the division reported pretax income of $3.6 million on revenues of $28.1 million.
The purchase is Varco's second since May when it acquired the Martin-Decker division of Houston-based Cooper Industries Inc. for $30 million. Martin Decker makes instruments, pipe-handling equipment, and measurement and monitoring devices for the oil industry and other heavy industries.