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Bilateral Chamber Member Halliburton Buys Oklahoma-Based Oil Field Equipment Supplier

July 5, 2017 | Bizjournals

Houston-based Halliburton Co. (NYSE: HAL) on July 5 announced the acquisition of Tulsa, Oklahoma-based Summit ESP, which provides electric submersible pump (ESP) technology and services.

Financial terms of the deal were not disclosed in the announcement. However, Summit’s 2016 revenue was about $180 million, down about 10 percent from 2015, according to a report from Reuters last week.

Summit has more than 500 employees in nearly 30 locations across North America, according to Halliburton’s announcement. Tulsa World reports thatHalliburton plans to retain Summit’s Tulsa office and its approximately 225 employees there indefinitely, citing a person familiar with the matter.

Baker Hughes veteran John Kenner founded Summit in 2010, Tulsa World reports. Tulsa billionaire oilman, banker and philanthropist George Kaiser’s Argonaut Private Equity backed the startup, per the reports.

Prior to the Summit acquisition, Halliburton had a small ESP business, which it was trying to build up to compete with Schlumberger Ltd. (NYSE: SLB) and Weatherford International PLC (NYSE: WTF), an analyst told Reuters.

“The acquisition of Summit expands Halliburton’s existing artificial lift capabilities and increases our overall leading position in North America oil field services,” Jeff Miller, president and CEO of Halliburton, said in the July 5 announcement. “Summit’s unrivaled service quality, proven technology and U.S. market leadership make it a perfect fit for Halliburton.”

Houston-based Baker Hughes, another major ESP provider, also recently closed a transformative deal. Its merger with GE Oil & Gas closed July 3, creating Baker Hughes, a GE Company (NYSE: BHGE).

In recent years, Halliburton had attempted to buy Baker Hughes, which U.S. regulators blocked, and then turned its attention to acquiring Russia’s Novomet Oil Services Holdings. Russian regulators also stalled the latter deal, per Reuters.

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