Stewart & Stevenson To Sell Engineered Products Division

Posted on September 29, 2005

Stewart & Stevenson Services, Inc. said it entered into a definitive agreement to sell substantially all of the operating assets of its Engineered Products Division to Hushang Ansary, a Houston oil industry entrepreneur and philanthropist, for cash consideration of approximately $60 million subject to adjustment based on assets delivered at closing.

The Engineered Products segment is involved in the well servicing industry and provides an array of equipment and services for the oil industry. The company's Well Servicing Products group has been manufacturing oilfield equipment for over five decades including fracturing equipment. Its Utility Equipment Division designs and manufactures Rail King mobile railcar movers, which support various switching operations throughout North America and manufactures off-road seismic vehicles on a contract basis.

The sale is expected to close within 45 days subject to regulatory approvals. S&S said it will retain certain assets and liabilities of the business that have been excluded from the sale.