Nabors Industries sells Quail Tools to Superior Energy for $600M

Nabors Industries (NBR) announced it has entered into a definitive agreement to sell its Quail Tools subsidiary to Superior Energy Services. Net consideration for the sale totals $600M plus adjustments for net working capital. Consideration is comprised of cash of $375M and a seller note of $250M. Nabors expects to incur cash taxes on the sale of approximately $5M. The transaction will close today. the company said, “This deal is your textbook win-win for both parties. We are retaining the balance of the portfolio that we acquired from Parker Wellbore, which includes tubular running services in the U.S. and Middle East, drilling rigs, and rig operations and management contracts. This portfolio is already making a solid contribution to our results, and we expect further improvement as we realize targeted cost synergies.”