Rival Oil Field Equipment Firms to Merge

Tuboscope Inc. of Houston said it will merge with rival oil field equipment company Varco International Inc. of Orange in a transaction valued at $834 million in stock. The combined company would be called Varco International Inc., and George Boyadjieff, Varco’s chairman and chief executive, would retain his titles at the new company. Varco and Tuboscope said the merger would allow them to attract more customers by offering a broader product line. Tuboscope maintains and inspects oil and natural-gas tubes and pipelines. Varco makes drilling equipment and rig instrumentation. Tuboscope said it would issue 0.7125 share for each Varco share. The offer values Varco at $12.78 a share, based on Wednesday’s closing price for Tuboscope. The average price for Varco shares during the last month was $12.55 a share. On the New York Stock Exchange, Varco rose $1 to close at $15.56, and Tuboscope rose 94 cents to close at $17.94. Together, Varco and Tuboscope had sales of $1 billion last year and employ 5,300 people. The companies would have dual headquarters in Houston and Orange.