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Kirby Corporation, the US transportation firm which earlier this month agreed to purchase the bunkering operations of Florida-based Enterprise Marine Services, has announced that it has signed an agreement to acquire United Holdings LLC, a distributor and service provider of engine and transmission related products for the oil and gas services, power generation and transportation industries, and manufacturer of oilfield service equipment.

The base purchase price is $270 million in cash (before post-closing adjustments), plus a three-year earnout provision for up to an additional $50 million payable in 2014.

United Holdings, headquartered in Oklahoma City, distributes and services equipment and parts for Allison Transmission, MTU Detroit Diesel Engines, Daimler Trucks NA, and other diesel and natural gas engines. The company also manufactures oilfield service equipment, including hydraulic fracturing equipment. United’s principal customers are oilfield service companies, oil and gas operators and producers, compression service companies and transportation companies.

The acquisition will be financed using Kirby’s existing cash and revolving credit facility. The closing of the acquisition is expected to occur in April 2011 and is subject to certain conditions, including the expiration of the required waiting period under the Hart-Scott-Rodino Act.

Commenting on the acquisition, Joe Pyne, Kirby’s Chief Executive Officer, said: “The recovery of shale gas is an energy "game changer" for the United States energy business because of the estimated amount of gas reserves and the relatively inexpensive cost of gas. A critical component of recovering shale gas is the ability to hydraulically fracture shale formations. United manufactures the hydraulic fracturing units and services the components which are high-speed diesel engines, transmissions and pumps, many of the same components used by our marine customers. United also manufactures gas compressors, pump jack power packages, cementers, blenders and nitrogen pumpers.”

Pyne continued: “We expect the purchase of United to be immediately accretive to our 2011 net earnings and cash flows. Projected full year 2011 revenues for United are anticipated to be in the $375 to $450 million range, generating projected full year net earnings in the $.20 to $.25 per share range. Assuming a closing in April 2011, anticipated revenues for Kirby from United’s operations would be in the $285 to $335 million range, generating net earnings in the $.15 to $.20 per share range. Kirby’s revised 2011 year guidance range, assuming the United acquisition and $.05 per share of earnings from the purchase of the Enterprise Marine Services ship bunkering operations announced earlier this month, is $2.55 to $2.80 per share, up from the previously announced guidance range for 2011 of $2.35 to $2.55 per share.”