Calgary-based CE Franklin Ltd. has entered into a non-binding letter of intent with Smith International, Inc., to acquire all of the common stock of Wilson International, Inc., a wholly owned subsidiary of Smith, in exchange for common shares of CE Franklin issued from treasury. CE Franklin will issue shares based on the June 30, 2004, balance sheet of Wilson, which is not yet finalized, and is estimated to be between $245 million and $250 million (U.S.).
Wilson, headquartered in Houston, is a leading distributor of PVF and mill, safety and other maintenance products to energy and industrial markets in the United States. Wilson generated sales of $730.4 million in 2003. If combined, sales of CE Franklin and Wilson would approach $1 billion.