By Houston Business Journal

Allis-Chalmers Energy Inc. has agreed to acquire American Well Control Inc. in a cash-and-stock deal valued at about $19.3 million.

The Houston-based oilfield services company will pay about $17.2 million in cash and 1 million in shares. Allis-Chalmersâ¿¿ (NYSE: ALY) shares closed at $2.11 on July 12.

Based in Conroe, American Well Control makes high-pressure valves used for hydraulic fracturing in unconventional gas shale plays. In 2009, the company generated revenue of about $18.5 million.

As part of the agreement, American Well Control President Richard Mitchell and executive Mark Albert will join Allis-Chalmers as members of the management team, according to the company.

Shares of Allis-Chalmers were up 7.1 percent to $2.26 in afternoon trading Tuesday.

Copyright 2010 American City Business Journals
Copyright 2010