National Oilwell Varco has signed a definitive agreement to acquire NKT Flexibles I/S (NKT) for approximately US $670 million or 3,800,000,000 Danish Kroner in cash.

NKT, a joint venture between NKT Holding and Subsea 7 S.A., is based in Denmark. The company designs and manufactures flexible pipe products and systems for the offshore oil and gas industry, including products associated with Floating Production, Storage and Offloading vessels ("FPSO's") and other offshore vessels, as well as subsea production systems including flow-lines and flexible risers. NKT recently signed a supply framework agreement with Petrobras and has decided to construct a new facility in Brazil to further strengthen its position in this important market.

Pete Miller, Chairman, President and CEO of National Oilwell Varco, stated "The incorporation of NKT's highly technical design capability and business into our Rig Technology group is an exciting and strategic opportunity for NOV. The addition of NKT's technology and expertise to our current suite of products for the offshore production market significantly increases our footprint in this growing segment of the oil and gas industry. We look forward to welcoming the employees of NKT into the NOV family."

The transaction is subject to customary closing conditions, including approval from the relevant competition authorities. It is expected to close during the first half of 2012.

Tags: National Oilwell Varco