Cleary Gottlieb is representing Goldman Sachs as financial advisor to Rowan Companies plc (Rowan), which jointly announced with Ensco plc today that the companies have entered into a definitive transaction agreement under which Rowan will combine with Ensco in a $12 billion all-stock transaction.
Rowan shareholders will receive 2.215 Ensco shares for each Rowan share. Upon closing, Ensco and Rowan shareholders will own 60.6 percent and 39.4 percent, respectively, of the combined company.
The combined company expects to realize annual pretax expense synergies of approximately $150 million, with more than 75 percent of targeted synergies expected to be realized within one year of closing. As a result, the transaction is projected to be accretive to cash flow to both companies’ shareholders in 2020 following an anticipated closing in the first half of 2019.
For more information, please see the press release here.