K.K.R in Talks to Buyout Samson Investment
It is now apparent that two years of small deals at Kohlberg Kravis Roberts & Co could not keep the company from lurching ahead and holding exclusive talks with Samson Investment Company; a very attractive family-owned oil/natural gas exploration unit the K.K.R group is determined to acquire. According to persons privileged with the information, the Samson Investment buyout will be a blockbuster takeover for K.K.R & Co. if it goes through.
The Samson Investment unit has been under the scrutiny of K.K.R for a while now, said the persons, who will remain unnamed due to the confidentiality aspect of the discussions. As part of the acquisition, the K.K.R unit has been arranging for financing with several banks, the sources added. Kohlberg Kravis Roberts & Co. is said to have beaten to the race, several other oil and natural gas groups to win itself exclusive talks with Samson Investment.
Should the two sides shake hands at the end of the talks, this takeover would be one of the biggest since the economic crisis of September 2008. This year also, the K.K.R group laid claim to one of the priciest private-equity deals of recent times by purchasing Del Monte Foods at $5.3 billion.\
According to their website, Samson Investment Company owns more than 4,000 wells to date. Also on their portfolio, are more than 11,000 partially owned wells drilled across the country. The company is valued at $8 – $10 billion sale value. Its huge success can be perched on the increasingly popular tactic of drilling for natural gas and oil in shale formations.
The buyout would see the Schusterman family let go of the reins at Samson, which has been in the family for more than 40 years. Through the years, the Schustermans have grown Samson into a reputable oil exploration company in Tulsa, Oklahoma. Currently, Stacy Schusterman, daughter to founder Charles Schusterman, runs the company in both capacities as chairperson and CEO. She admitted to the company’s talks with K.K.R in an internal memorandum.
“If a definitive agreement is reached with K.K.R, it will be because they recognize the value of our assets and our team,” Stacy Shusterman said. “K.K.R has stated that if we move forward, they are committed to building our team at each of our current locations.” She added. A K.K.R spokesperson cited confidentiality reasons and declined to comment when approached.