Rowan to sell LeTourneau to Joy Global for $1.1 billion

By OGJ editors
HOUSTON, May 16
-- Rowan Cos. Inc. entered into a share purchase agreement with Joy Global Inc. to sell its mining and rig construction business, LeTourneau Technologies Inc., for $1.1 billion in cash.

The deal with Joy Global, said Rowan Pres. and Chief Executive Officer Matt Ralls, is consistent with the company’s “strategy to separate noncore businesses.” Ralls noted that he expects most of the aftertax proceeds, about $875 million, to be redeployed into the company’s offshore drilling business, either through continued growth of its high-specification jack up fleet or expansion into the ultradeepwater drilling segment.



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