EANS-Adhoc: Schoeller-Bleckmann Oilfield Equipment AG / SBO acquires US company "Downhole Technology LLC" (Downhole Technology)

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Mergers - Acquisitions - Takeovers
01.04.2016

AD HOC-NEWS

SBO acquires US company "Downhole Technology LLC" (Downhole
Technology)

- SBO expands its well completion business as announced
- Downhole Technology offers high growth potential
- Financing through existing liquid funds

Ternitz, 1 April 2016 - Schoeller-Bleckmann Oilfield Equipment AG
(SBO) acquires 68% (rounded) of the US oilfield equipment provider
"Downhole Technology LLC" (Downhole Technology).

Following the acquisition of Resource Well Completion Technologies
Inc. (Resource) in November 2014, SBO is expanding its well
completion business by integrating Downhole Technology into the
business segment "Oilfield Equipment".

Signing and closing of the transaction took place today. The purchase
price for the 68% share is MUSD 103 (rounded). The remaining 32% are
held by the company founder and key managers. The agreement includes
an option to acquire the remaining 32% in Downhole Technology after
three years.

Downhole Technology is based in Houston, US, and was, prior to
Closing, owned by the company founder, key management and a private
equity company. The company is a technologically leading provider of
patent protected "composite frac plugs" for completion of oil and gas
wells. In the past fiscal year, which ended on December 31, 2015,
Downhole Technology generated sales revenues of approx. MUSD 43 with
a workforce of 160.

SBO is financing the purchase price through existing liquid funds.
After payment of the purchase price for the 68% share, SBO's
profoundly strong balance sheet structure will be maintained as
before, with the gearing ratio standing below 15% (based on equity at
YE: MEUR 450; Gearing at YE 2015: -5.8 %). The company name Downhole
Technology and the current management will be retained. From now on,
Downhole Technology will benefit from SBO's global presence and
financial and operating strength, allowing for substantially better
use of the significant growth potential offered by the business field
well completion.

Gerald Grohmann, SBO's Chief Executive Officer: "With this
acquisition, we are continuing the corporate strategy we have
announced: We are broadening our portfolio in the attractive product
area of well completion. This helps us to extend our range of
products, know-how, but also our customer base by creating
added-value both for our company and our shareholders. Downhole
Technology is an outstanding business with an innovative workforce
fitting in well with the corporate culture of SBO."

About well completion und the products of Downhole Technology

In the past, SBO focused on components for directional drilling.
After the well has been drilled, the next step is to prepare the well
for the production of oil and gas, a procedure called well
completion. Since the acquisition of Resource in November 2014, SBO
is also active in this area. While Resource provides high-tech
sliding sleeve equipment for well completion, Downhole Technology
offers plug-and-perforation equipment for such operations.

Downhole Technology is a technologically leading provider of
"composite frac plugs". The patented design, the manufacturing
know-how and the high quality standard of its products enable
completion of the well to be done faster, more efficiently and more
securely. As a consequence, Downhole Technology has reached an
outstanding acceptance on the market. With Downhole Technology and
Resource, SBO is now in a position to offer a wide range of tight
formation completion tools.

About SBO

Schoeller-Bleckmann Oilfield Equipment AG is the global market leader
in high-precision components and a leading supplier of oilfield
equipment for the oilfield service industry. The business focus is on
non-magnetic drillstring components and high-tech downhole tools for
drilling and completing directional and horizontal wells. As of 31
December 2015, SBO employed a workforce of 1,135 worldwide (31
December 2014: 1,720), thereof 376 in Ternitz/Austria and 399 in
North America (including Mexico).

Further inquiry note:
Andreas Boecskoer, Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG
A-2630 Ternitz, Hauptstraße 2
Phone: +43 2630/315 ext 252, fax ext 101
e-mail: a.boecskoer@sbo.co.at

end of announcement euro adhoc
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issuer: Schoeller-Bleckmann Oilfield Equipment AG
Hauptstrasse 2
A-2630 Ternitz
phone: 02630/315110
FAX: 02630/315101
mail: sboe@sbo.co.at
WWW: http://www.sbo.at
sector: Oil & Gas - Upstream activities
ISIN: AT0000946652
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien
language: English