Varco International Inc. has entered a definitive purchase agreement with ICO Inc. to acquire all of ICO's oilfield service business for $136.7 million, plus assume trade payables and accrued operating expenses. The oilfield service business of ICO to be acquired generated $125 million in sales and $18 million in operating profit in its fiscal year ended Sept. 30, 2001. The company stated that $6 million of annual cost is expected to accrue as a result of the transaction. Varco will acquire the assets of ICO's oilfield services business in the U.S., Mexico, Southeast Asia, and Europe and the ICO's Canadian operating subsidiary stocks. The final purchase price is subject to an adjustment for working capital changes in the business, and debt and cash levels of the acquired Canadian subsidiary.
