Our Louisiana readers know that business is constantly moving. Things do not stay the same very long in corporations. Companies merge or become acquired. Workers are relocated or shifted into different positions. Leadership styles and teams change.
Louisiana company Morgan City Rentals was recently bought by Texas company Delta Rigging & Tools. Both companies work in the oil and gas industry. Morgan City is involved in leasing rigging supplies and provisions. Delta leases as well, and also offers rigging supplies for purchase. Delta was seeking a greater impact in Louisiana. With Morgan City having three locations in Louisiana, including Golden City, Broussard and Morgan City, Delta found purchasing the company would fit their expansion needs. Delta is partnered with Austin Ventures which allows it to be involved in the acquisition of other companies through venture capital to stay competitive in the oil and gas industry. The newly integrated company will have around 500 employees. The actual price of the sale was not revealed by either company.
Mergers and acquisitions are a part of how corporations are run. They can also become part of business litigation when the two corporations have a dispute. An acquisition tends to occur when a small corporation is taken over or acquired by a more substantial one. A merger is when there is a business dealing that has to do with the integration of two corporations. Acquisitions and mergers are very complex and often involve issues such as business valuation, corporate asset sales, stock purchases and existing contracts, to name a few. There is always a possibility of disagreements in acquisitions and mergers. Knowing the options under current business law can help the process run smoothly and have a positive end result.
Source: Houston Business Journal, “Delta Rigging & Tools acquires Louisiana offshore rental company,” Molly Ryan, June 10, 2013
