EXHIBIT 99.2ROWAN COMPANIES, INC. COMPLETES PURCHASE OF THE ELLIS WILLIAMS COMPANY, INC.
HOUSTON, Jan 31, 2000 -- Rowan Companies, Inc. (NYSE: RDC) announced today that
LeTourneau, Inc., a wholly owned subsidiary, has completed the purchase of The
Ellis Williams Company, Inc. and EWCO, Inc. dba Traitex Machine Co., which
design and manufacture mud pumps ranging in capacity from 350 to 2200 HP.
The purchase price was approximately $9 million, $6 million in cash and the
balance in promissory notes due over a three-year period. Rowan expects the new
company, LeTourneau Ellis Williams Company, Inc., will generate first year
revenues in the range of $9 to $12 million, and that operations for the first
quarter of 2000 will be profitable.
C. R. Palmer, Chairman and CEO commented, "We view the acquisition of The Ellis
Williams Company as a 'bolt-on' addition to our manufacturing division. We
believe the acquisition will increase the profitability of LeTourneau, broaden
the customer base, and expand the product line.
"We anticipate utilizing LeTourneau's manufacturing facility in Longview, Texas
to add capacity and decrease delivery times for certain lines of EWCO pumps. In
addition, we expect to consolidate the Ellis Williams operations, presently
conducted at two Houston area locations, in a larger Houston area plant with
increased capacity. Our goal is to increase pump deliveries by a factor of three
by the year 2003.
"We are particularly pleased that the founder, Ellis Williams, Jr., has agreed
to remain as a design consultant, and Michael R. Williams, formerly President of
The Ellis Williams Company, has agreed to remain in the new LeTourneau
subsidiary as Senior Vice President and General Manager. Each will contribute to
improving the existing pump line and will provide guidance and direction in the
development of additional pump designs."
Rowan Companies, Inc. is a major provider of international and domestic offshore
contract drilling and aviation services. The Company also operates a mini-steel
mill, a manufacturing facility that produces heavy equipment for the mining,
timber and transportation industries, and a marine division that has designed
and built over one-third of all mobile offshore jack-up drilling rigs, including
all 21 operated by the Company. The Company's stock is traded on the New York
Stock Exchange and the Pacific Stock Exchange. Common Stock trading symbol: RDC.
Contact: William C. Provine, Vice-President - Investor Relations, 713-960-7575.
This report contains forward looking statements within the meaning of the
Private Securities Litigation Reform Act OF 1995, including, without limitation,
statements as to the expectations, beliefs and future expected financial
performance of the Company that are based on current expectations and are
subject to certain risks, trends and uncertainties that could cause actual
results to differ materially from those projected by the Company. Among the
factors that could cause actual