(By Balachander) Robbins & Myers Inc. (NYSE:RBN) shares jumped 27 percent on Thursday after the maker of engineered equipment agreed to be acquired by National-Oilwell Varco Inc.(NYSE:NOV) for $60.00 a share, or about $2.5 billion.
The deal represents a premium of 28 percent to RBN's previous closing price.
The acquisition is expected to boost product offerings from Houston, Texas-based National Oilwell Varco, which is engaged in the sale of oil-field equipments.
Texas-based Robbins & Myers offers industrial process and flow control products for critical applications in global energy, industrial, chemical and pharmaceutical markets. Its Energy Services segment provides down-hole pumps and systems, tubing wear products and well control solutions, while Process and Flow Control unit makes glass-lined reactor systems and thermal fluid systems, among others.
Robbins, which employs 3,400 people, earned $1.02 a share on sales of $266.33 million for the third quarter ended May 31.
The companies expect the deal to be completed in the fourth quarter.
On Thursday, RBN shares rose $12.69 to trade at $59.49. The stock has been trading between $31.54 and $59.58 over the past year.
NOV shares added 0.56 percent to trade at $76.77.