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Now that Houston-based Rubicon Oilfield International has closed on its second acquisition of the year, Canada-based Logan International Inc. for about $90 million, the company is looking to run the Logan brand internationally.
Rubicon, which is backed by private equity firm Warburg Pincus LLC, first announced plans to acquire Logan in August. The deal closed Oct. 24, and Logan will no longer be traded on the Toronto Stock Exchange.
Rubicon has existing customer relationships and supply contracts that the company can leverage to grow the Logan brands outside of North America, Rubicon CEO Michael Reeves told the Houston Business Journal.
Rubicon’s business is focused on products sold or rented as part of the down-hole process, and Logan’s core businesses fall squarely within that space, Reeves said.
“Logan Oil Tools, in particular, has a long history of providing great quality products for fishing and intervention,” Reeves said. “Logan has a great brand name and a particular strength in North America and lots of growth potential in international markets.”
Reeves thinks the oil market is approaching the bottom of “the worst downturn that I’ve experienced in my career,” he said. That’s put some companies, like Logan, into a “challenging” position, Reeves said.
“This is an opportunity to acquire a brand name that’s highly respected, and has been for many years, at a price that we felt offered a significant opportunity for us to deliver value to our investors,” he said. “It makes sense to be making acquisitions at this time.”