Lone Star Technologies Inc. has entered into a definitive agreement with Wheeling Machine Products, Inc. and Wheeling Machine Products of Texas, Inc., collectively one of the largest domestic suppliers of couplings used to connect individual sections of oilfield casing and tubing, to acquire Wheeling’s production assets for USD 21.2 million in cash. Lone Star will also pay an additional estimated USD 17.1 million for Wheeling’s net working capital. Wheeling, which has manufacturing facilities in Pine Bluff, Ark., and Hughes Springs and Houston, Texas, currently supplies most of Lone Star’s coupling requirements. The transaction is expected to be immediately accretive to Lone Star’s earnings per share and is expected to be completed early in the fourth quarter of this year.
