Ensco plc/Pride International
On February 7, 2011, Ensco plc (NYSE: ESV) and Pride International, Inc. (NYSE: PDE) announced that they have entered into a definitive agreement whereby Ensco will combine with Pride in a cash and stock transaction valued at $41.60 per share.
Under the terms of the merger agreement, Pride stockholders will receive 0.4778 newly-issued shares of Ensco plus $15.60 in cash for each share of Pride common stock. Total consideration is $41.60 per outstanding share, or about $7.3 billion.
Ensco expects the combined company to realize annual pre-tax expense synergies of at least $50 million FY12.
Closing is expected in Q211.
Based on the closing price of each company’s shares on February 4, 2011, the estimated enterprise value of the combined company is $16 billion. The total estimated revenue backlog for the combined company is approximately $10 billion.
Ensco management anticipates that the planned combination will be accretive to earnings per share in 2011 and 2012.
Ensco’s lead financial advisor and strategic advisor for the transaction is Deutsche Bank Securities Inc. and Citi also served as financial advisor, and its legal advisor is Baker & McKenzie LLP. The financial advisor for Pride is Goldman, Sachs & Co. and its legal advisors are Baker Botts L.L.P. and Wachtell, Lipton, Rosen & Katz.
Under the terms of the merger agreement, Pride stockholders will receive 0.4778 newly-issued shares of Ensco plus $15.60 in cash for each share of Pride common stock. Total consideration is $41.60 per outstanding share, or about $7.3 billion.
Ensco expects the combined company to realize annual pre-tax expense synergies of at least $50 million FY12.
Closing is expected in Q211.
Based on the closing price of each company’s shares on February 4, 2011, the estimated enterprise value of the combined company is $16 billion. The total estimated revenue backlog for the combined company is approximately $10 billion.
Ensco management anticipates that the planned combination will be accretive to earnings per share in 2011 and 2012.
Ensco’s lead financial advisor and strategic advisor for the transaction is Deutsche Bank Securities Inc. and Citi also served as financial advisor, and its legal advisor is Baker & McKenzie LLP. The financial advisor for Pride is Goldman, Sachs & Co. and its legal advisors are Baker Botts L.L.P. and Wachtell, Lipton, Rosen & Katz.
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