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RPC, Inc. to Spin-Off Chaparral Boats to Shareholders; RPC to Become a Sole Provider of Services to the Oil and Gas Industry |
ATLANTA, Jan. 14 /PRNewswire/ -- RPC, Inc. (NYSE: RES - news), a leading provider of services to the oil and gas industry and a manufacturer of recreational powerboats, today announced that it has taken the initial steps to spin-off its 100% equity ownership in Chaparral Boats, Inc. The transaction, expected to be completed during the third quarter of 2000, will be structured as a tax- free distribution of Chaparral stock to RPC, Inc. (RPC) shareholders. The spin-off transaction is subject to various approvals including a favorable tax ruling from the Internal Revenue Service (IRS) and final approval from RPC's Board of Directors. A ruling request has been filed with the IRS, and a listing application is expected to be filed for each company to be separately traded on the NYSE.
These two business segments have different target markets, operating characteristics and customer requirements. The separation will allow management to focus on their specific industries and to deploy tailored strategies thereby building value for customers, shareholders and employees. The spin-off also sets the stage for future growth, including acquisitions, helps analysts evaluate the values for each of the oil and gas services company and the leisure boat manufacturing company, and creates separate investment opportunities. ``This is a major step in strategically positioning our oilfield service companies and our leisure boat manufacturing company to successfully grow and compete in the twenty-first century,'' said R. Randall Rollins, RPC's Chairman and CEO.
RPC owns and operates several oil and gas services businesses, including Cudd Pressure Control, Patterson Services, and Patterson Tubular Services. These companies provide a variety of equipment, personnel, and specialized services to customers in the oil and gas industry. Chaparral Boats is a leading manufacturer of fiberglass deckboats, sportboats, and cruisers ranging in sizes from 18 to 35 feet. Chaparral's reputation for superior products is evidenced by having won twenty Powerboat Magazine Awards for Product Excellence, including six boat of the year trophies.
This press release includes statements which may constitute forward- looking statements as defined in the Private Securities Reform Act of 1995 and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially form those anticipated, estimated or expected. These risks include the possibility that the proposed spin-off will not realize the anticipated benefits for either RPC or Chaparral, including without limitation, enhanced future growth and acquisition opportunities, and the possibility that the NYSE could deny the listing application of either or both companies. Numerous other risk factors are identified in the Report on Form 10-K filed for the fiscal year 1998.
CONTACT: Ben M. Palmer, Chief Financial Officer of RPC, Inc., 404-321-2140
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