On 8 ^th April 2009 National Oilwell Varco (NOV) announced the acquisition of the entire share capital of ASEP BV.

 

With headquarters in the Netherlands, ASEP is the recognised industry leader in the manufacture of well servicing equipment, in particular wireline winch units and trucks, and has established facilities in Europe, M. East, F. East, and N. America.

 

According to Joe McAnally, President of NOV Well Intervention and Stimulation Equipment Group, “The acquisition of ASEP realizes the Corporate mission of NOV to be the world leader in the supply of a complete range of wireline product solutions to the Oil and Gas Industry.”

 

Sietse Koopmans, ASEP Chairman gives his comment: “During these difficult economic times we believe this step will help secure the future of ASEP, and its workforce, ultimately to the benefit of our customers. With a strong balance sheet and a range of complementary products NOV has the financial strength which, combined with the portfolio of Products and Services our two companies can jointly offer, brings the chance of real synergy, increased value and greater depth in support of our client’s activities.” ASEP will form part of the NOV Well Intervention and Stimulation Equipment Division and will provide an important addition to the existing NOV brand portfolio that also includes NOV Elmar, the market leader in the design and manufacture of wireline pressure control equipment. Both ASEP and Elmar are known for their high quality, innovative products and have complementary expertise that will maximise their respective strengths. David Brebner, who will be responsible for the combined operations of both Elmar and ASEP, says: “The Division will be called NOV ASEP Elmar and will represent the brand names of NOV ASEP - which will cover Wireline winches, winch trucks and cranes and NOV Elmar which will cover Wireline pressure control equipments and masts. With both Brands representing the ‘best in class’ it will allow our customers to satisfy their wireline equipments needs at a ‘1 stop shop’”.

 

According to Brebner, mergers and acquisitions in a downturn often bring increased stability into their relevant markets, whilst allowing for business integration to take place. “The result of which is to: maximise the strengths of both entities while allowing any weaknesses to be tackled and addressed in a speedy and disciplined manner. The end game is to allow the new entity to trade successfully through the downturn but be positioned to exploit the business opportunities when market recovery starts to manifest itself,” continues head of NOV ASEP Elmar. 

 

David Brebner was also kind to share his opinion about the prospects of the industry in general: “I believe this is the first time the industry has had to cope with a truly global recession and whilst we are seeing peaks and troughs in the oil price being mirrored in equipment buying activity, I feel that if we have an oil price that stabilises at $60 -$70 per barrel or more) plus successful results in the quantitive easing currently being adopted in some currency markets - then we may see the oil industry worldwide start spending and developing new opportunities.

 

The requirement for large amounts of oil and gas has not disappeared merely reduced as a reflection of the global slowdown. I have no doubt this will change when the global economy picks up speed again.”