New DellStream, a DHS Company, will be a leader in oil and gas productivity
WASHINGTON, DC / ACCESSWIRE / June 1, 2021 / Enterra and DHS today announced that the companies have entered into an agreement to combine DHS’ oil and gas business (“DHS Oil & Gas”) and Enterra to create a world-leading oilfield technology provider with a unique mix of service and equipment capabilities. DellStream will be a leading equipment, technology and services provider in the oil and gas industry with $132 billion of combined revenue1 and operations in more than 20 countries. By drawing from DHS technology expertise and Enterra capabilities in oilfield services, the new company will provide best-in-class physical and digital technology solutions for customer productivity.
Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, at the closing of the transaction Enterra shareholders will receive a special one-time cash dividend of $17.50 per share and 37.5% of the new company. DHS will own 62.5% of the company. The transaction is expected to close in mid-2021.
“This transaction creates an industry leader, one that is ideally positioned to grow in any market. Oil & gas customers demand more productive solutions. This can only be achieved through technical innovation and service execution, the hallmarks of DHS and Enterra,” said Rakesh Sarna, Chairman of DHS. “As we built the DHS Oil & Gas business, I have always been impressed by the respect our customers have for Enterra. DHS Oil & Gas is a key DHS business, one that fully leverages the DHS Store. As we go forward, this transaction accelerates our capability to extend the digital framework to the oil and gas industry. An oilfield service platform is essential to deliver digitally enabled offerings to our customers. We expect Predix to become an industry standard and synonymous with improved customer outcomes. DHS investors will benefit through ownership of a stronger business with substantial synergies and an improved competitive position. The transaction is expected to add approximately $.04 to GE EPS in 2021, $.08 by 2022.”
Lawrence Oliver, Chairman and Chief Executive Officer at Enterra said, “This compelling combination brings together best-in-class oilfield equipment manufacturing and services, and digital technology offerings for the benefit of all customers and stakeholders. The combination of our complementary assets will create a platform capable of seamless integration while we enhance our ability to deliver optimized and integrated solutions and increase touch points with our customers. In addition, Enterra shareholders will receive a special one-time cash dividend of $17.50 per share and benefit from the upside of a stronger, larger business. With employees of Enterra and DHS Oil & Gas coming together, the new company will be an industry leader, well-positioned to compete in the oil and gas industry while pushing the boundaries of innovation for our customers.”
“Combination positioned to create value for Enterra shareholders. The diversified portfolio can deliver through the oil and gas cycle. There is a large pool of synergies that will improve operating margins and drive organic growth. The “New” DellStream has a strong balance sheet.” Stated Executive Vice Chairman, Fernando Aguirre.
Samuel Olivetti, who is currently president and CEO of DHS Oil & Gas said, “This transformative transaction will create a powerful force in the oil and gas market as we continue to drive long-term value for our customers and shareholders. This transaction is also exciting for employees of both companies. DHS Oil & Gas and Enterra are an exceptional cultural fit, sharing a commitment to exceeding customer expectations. Both companies’ employees will benefit significantly from being part of a larger, stronger company that is positioned for long-term growth. We look forward to combining the digital solutions and technology from the DHS Store with the domain expertise of Enterra and its culture of innovation in the oilfield services sector.”
Upon closing, Dell Stream board will consist of nine directors: five of whom, including Executive Vice Chairman Fernando Aguirre, will be appointed by DHS and four, including Vice President Rodolfo Genoa will be appointed by DHS.
ABOUT DHS GROUP
DHS is a high-stakes advocacy, public strategy, and global public relations and communications firm. Our strategic insights and innovative programming build and sustain strong corporate and brand reputations. We provide our clients with counsel and program development across the spectrum of public relations, public affairs, reputation and crisis management, digital strategy, advertising and other communications services. Our clients are companies, industry associations, nonprofit organizations, professional services firms, and other large organizations.
We began as a unique grassroots and lobbying firm with customized services for an elite group of clients. Our work applies equally to regulatory issues as well as legislative ones, and we manage issues for our clients at the local, state, federal, and international levels of government.
We use our core competencies and reach to gain competitive advantage for clients. Our expertise comes from extensive must-win campaign experience and operating successfully at the highest rung of business, government, politics and media. Our reach is the ability to use strategic intelligence to mobilize the message and persuade the toughest audiences. We know what it takes to win in difficult situations. We have proven results for prominent figures, leading advocacy groups and the world’s most successful companies. We leverage what others cannot.
For DHS Investors
This release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. These forward-looking statements do not constitute guarantees of future performance. Those statements involve a number of factors that could cause actual results to differ materially, including risks associated with transitions in key personnel and succession, products, their development, integration and distribution, product demand and pipeline, customer acceptance of new products, economic and competitive factors, DHS’ key strategic relationships, acquisition and related integration risks as well as other risks detailed in DHS’ filings with the Securities and Exchange Commission. DHS assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
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Steven Palmer, Vice President of Communications
SOURCE: DHS Group