Zacks_Analysts' Blog : NOV Completes APL Buy - Analyst Blog

Oilfield services company National-Oilwell Varco (NOV) has closed its previously announced acquisition of Advanced Production and Loading Plc (“APL”), a subsidiary of Norway-based BW Offshore Ltd. The financial terms of the transaction were not disclosed.

APL is a maker of turret mooring systems and other products for floating production storage and offloading vessel (“FPSO”) vessels, as well as for other offshore vessels and terminals.

The APL deal is expected to offer National-Oilwell Varco a meaningful growth opportunity through the expansion of its FPSO product line – one of the fastest-growing areas of the offshore market – and will help the company in becoming the only integrated, independent provider of certain vital FPSO components.

Houston, Texas based National-Oilwell Varco, formerly National-Oilwell, is a world leader in the design, manufacture, and sale of comprehensive systems, components, products, and equipment used in oil and gas drilling and production worldwide.

The company reached its current form following the March 2005 merger between National-Oilwell and Varco International. National-Oilwell Varco organizes its operations in three business segments: Rig Technology, Petroleum Services & Supplies and Distribution Services.

National-Oilwell Varco, which ranks ahead of Cameron International Corp. (CAM) as the biggest U.S. maker of oilfield equipment, currently retains a Zacks #3 Rank that translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.