Cameron to acquire NATCO

Cameron has entered into an agreement to acquire NATCO in an all-stock transaction that values NATCO at approximately $780 million.

Offshore staff

HOUSTON -- Cameron has entered into an agreement to acquire NATCO in an all-stock transaction that values NATCO at approximately $780 million. Under the agreement, NATCO shareholders will receive 1.185 shares of Cameron common stock in return for each of NATCO’s approximately 20.3 million shares outstanding.

The boards of directors of both Cameron and NATCO have unanimously approved the transaction, which is expected to close during the third quarter, subject to regulatory approvals, approval by a majority of NATCO’s shareholders, and other conditions.

NATCO is a provider of process equipment, systems and services, including proprietary equipment and technologies, to the worldwide oil and gas industry. NATCO has approximately 2,400 employees and generated revenues of more than $650 million during 2008.

Cameron President and CEO Jack B. Moore believes that the combination of the businesses will immediately enhance both companies’ presence in the growing market for larger, more sophisticated process systems, especially in Southeast Asia, West Africa, the Middle East, and Brazil. He noted that the acquisition will broaden the company’s product offerings with a wider range of proprietary technologies, particularly in deepwater production processing and downstream markets; provide cross-selling opportunities for certain of Cameron’s and NATCO’s product lines; and will add manufacturing capability to Cameron in processing and separation products, a capability that Cameron does not have today.

06/02/2009

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