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Lufkin Industries Completes Acquisition - 3x Larger Than All Acquisitions in the Past 5 Years Combined

|Includes: Lufkin Industries, Inc. (LUFK)

Lufkin Industries (NASDAQ: LUFK), a global supplier of oil field and power transmission products, recently announced the completion of its largest acquisition in the past 5 years. On 1-Dec-11, LUFK reported that it acquired substantially all of the assets of Quinn’s Oilfield Supply Ltd. for approximately $311 million.

Prior to acquiring Quinn, LUFK had completed four acquisitions in the last five years, all of which occurred since March 2009. The combined consideration for those four totaled $93 million, $56 million of which was allocated to goodwill. The largest was the March 2009 acquisition of International Lift Systems for $50 million. The aggregate amount of goodwill recorded from these acquisitions represented approximately 60% of the total consideration paid by LUFK. In fact, at least 50% of the total price paid on each acquisition was allocated to goodwill. The allocation of the purchase price for Quinn’s is not yet available.

Here is LUFK's press release on the acquisition.