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EXHIBIT 99.2
NEWS RELEASE
For further information contact:
Dailey J. Berard Pete Roman
Chief Executive Officer Chief Financial Officer
(318) 367-8291 (318) 373-5506
FOR IMMEDIATE RELEASE
MONDAY, July 27, 1998
New Iberia, Louisiana - UNIFAB International, Inc. (NASDAQ-UFAB) announced today
that it has completed its acquisition of Allen Tank, Inc. (Allen Tank). The
purchase price was 819,000 shares of UNIFAB International, Inc. common stock
plus $1.2 million in cash and notes. From its main operating facility in New
Iberia, Louisiana, Allen Tank designs and manufactures specialized process
systems, such as oil and gas separation systems, gas dehydration and treatment
systems, and oil dehydration and desalting systems, and other production
equipment related to the development and production of oil and gas reserves.
Allen Tank also provides a full complement of engineering and field
commissioning services related to production systems. The acquisition will be
accounted for as a pooling of interests. Allen Tank will operate as a
wholly-owned subsidiary of UNIFAB International, Inc.
"Allen Tank is a recognized leader throughout the industry for quality products
and expert craftsmanship," said Dailey J. Berard, President, Chairman and CEO.
"The combination of Allen Tank with UNIFAB allows us to offer a greater range of
services to our customers, including complete topside facilities. Allen Tank is
a certified ISO 9001 company and currently employs over one hundred fifty
personnel, including skilled craftsmen, designers and engineers. In addition we
have acquired seasoned management experience and complementary industry
expertise which will help us manage the growth plans we have undertaken. We
expect to integrate the two companies, increase our overall capabilities, better
handle fluctuations in the business and grow into our deep water facility in
Lake Charles effectively and efficiently. The capabilities of the combined
companies are very exciting. We also expect to be able to realize cost benefits
from the synergy of combining Allen Tank's operations with UNIFAB's. With this
acquisition UNIFAB's annual revenues will exceed $100 million and we expect
continued growth as oil and gas prices stabilize."
The four founders of Allen Tank, each a degreed mechanical engineer, will remain
with the Company. Mr. Vince Cuevas has been appointed President of Allen Tank.
Mr. Cuevas has 27 years experience in the industry, most recently as Vice
President of Operations with Allen Tank, prior to which he served various
capacities with Natco, including Regional Sales and Marketing Manager. Mr. Gil
Weisberger, Vice President Engineering, has 22 years of experience in the
industry. Prior to joining Allen Tank, Mr. Weisberger served as Chief Engineer
of Southern Operations for Natco. Mr. Walt Hampton, Vice President of Sales, has
27 years experience. Mr. Hampton was formerly with Natco as Regional Sales and
Marketing Manager, as well as other capacities. Mr. Allen C. Porter, Jr, has
accepted the position of Special Consultant to the President. Mr. Porter, with
over 38 years industry experience, served as President of Allen Tank. Mr.
Porter's experience prior to the formation of Allen Tank includes serving as
Production and Gas Engineer for Gulf Oil Corporation and various positions for
Natco including Vice President Southern Region.
Allen Tank recognized revenue, operating profit, and pretax income of $40.6
million, $6.6 million, and $1.8 million, respectively, for the 52-week period
ended December 27, 1997 and $18.0 million, $4.4 million, and $2.3
2
million, respectively, for the 24-week period ended June 13, 1998.
UNIFAB also announced the acquisition of LATOKA USA, Inc. for approximately
79,000 shares of UNIFAB International, Inc. Common Stock. LATOKA USA, Inc.,
through a wholly owned subsidiary, LATOKA Engineering, Ltd., headquartered in
London, England, provides engineering and project management services mainly in
Europe and the Middle East. LATOKA Engineering, Ltd. Had revenues of $4.0
million and pre tax loss of $0.5 million for the year ended December 31, 1997.
UNIFAB International, Inc. is an industry leader in the custom fabrication of
decks, equipment modules and other structures used in the development and
production of offshore oil and gas reserves. The Company also refurbishes and
retrofits existing jackets and decks and performs offshore piping hookup and
platform maintenance services. Through a wholly owned subsidiary, PIM, LLC,
UNIFAB provides industrial maintenance services and, at its 60 acre fabrication
facility located twelve miles south of Lake Charles, Louisiana, provides repair,
refurbishment and conversion services for oil and gas drilling rigs. Dailey J.
Berard serves on the Louisiana Workforce Commission and other task forces that
are working to improve the training and education of the workforce of Louisiana.
Statements made in this news release regarding UNIFAB's expectations as to
future operations of UNIFAB and Allen Tank and other statements included herein
that are not statements of historical fact are forward-looking statements that
depend upon the following factors, among others: continued demand for the
services provided by UNIFAB and Allen Tank, availability of skilled employees,
and UNIFAB's ability to integrate and manage the acquired business. Should any
of these factors not continue as anticipated, actual results and plans could
differ materially from those expressed in the forward-looking statements.