Ensco & Rowan To Combine; Rowan Shareholders To Receive 2.215 Ensco Shares/shr

(RTTNews) - Ensco plc (ESV) and Rowan Companies plc (RDC) announced they have entered into a definitive transaction agreement under which Rowan will combine with Ensco in an all-stock transaction. Rowan shareholders will receive 2.215 Ensco shares for each Rowan share. Upon closing, Ensco and Rowan shareholders will own approximately 60.5% and 39.5%, respectively, of the outstanding shares of the combined entity.

The combined company expects to realize annual pre-tax expense synergies of approximately $150 million, with more than 75% of targeted synergies expected to be realized within one year of closing. The deal is projected to be accretive to cash flow per share in 2020 following an anticipated closing in the first half of 2019.

Carl Trowell will become the combined company's Executive Chairman, Tom Burke will serve as President and Chief Executive Officer, and Jon Baksht will serve as Senior Vice President and Chief Financial Officer. The combined company will be domiciled in the United Kingdom.