BJ Services Co., Houston, (NYSE: BJS) plans to buy Osca Inc., Lafayette, La., (Nasdaq: OSCA) for $28 per share, or approximately $420 million, in cash. Osca provides well-completion fluids, completion services and downhole-completion tools in the U.S. and some international markets. Great Lakes Chemical Corp. (NYSE: GLK), which owns approximately 53% of Osca's common stock, has agreed to sell its shares. The deal may close in the second quarter. BJ Services chief executive officer J.W. Stewart says the acquisition follows the company's strategy to focus on product and service lines that complement pressure pumping and add strength to its primary business. "BJ has stated its objective to increase its presence in the global completion tool business," he says. "Osca's technically advanced offering of completion tools, combined with BJ's extensive geographic market presence, provides an attractive opportunity for expansion of this product line." Osca president and CEO Robert Hollier says, "Osca has had a great run since the inception of the company in 1979." It was spun off in a public offering by Great Lakes in March 2000 at $16 per share. Great Lakes retained a majority ownership of the stock at the time. BJ Services will use existing credit facilities to finance the transaction, which will increase its debt-to-capitalization ratio to approximately 29%. The company expects to achieve operating cost synergies between $15- and $20 million from the combination. -Jodi Wetuski
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