Oilfield services firm National Oilwell Varco Inc. ( NOV - Analyst Report ) has agreed to acquire industrial parts maker Ameron International Corp. ( ) for about $772 million in cash. The transaction, which has been approved by the boards of both the companies but awaits regulatory and shareholder approvals, is expected to close by the fourth quarter of 2011.

As per the deal, Ameron shareholders would get $85 in cash for each share they hold. At Ameron’s Friday’s closing stock price of $66.27, the deal values the company’s shares at a 28% premium.

Pasadena, California-based Ameron is a leading multinational producer of highly-engineered products and materials catering to the chemical, industrial, energy, transportation and infrastructure markets. In particular, Ameron is a leading manufacturer of fiberglass-composite pipe for transporting oil, chemicals and corrosive fluids and specialized materials and products used in infrastructure projects.

The acquisition will allow National Oilwell Varco to broaden scale and scope of the solutions that it offers to oil and gas customers worldwide. Post merger, National Oilwell Varco expects Ameron's products (particularly the fiberglass-composite pipe producing operation) to benefit its oilfield pipeline business through efficiencies and economies of scale.

Houston, Texasbased National Oilwell Varco, formerly National Oilwell, is a world leader in the design, manufacture and sale of comprehensive systems, components, products and equipment used in oil and gas drilling and production worldwide.

The company reached its current form following the March 2005 merger between National Oilwell and Varco International. National Oilwell Varco organizes its operations in three business segments: Rig Technology, Petroleum Services & Supplies, and Distribution Services.

National Oilwell Varco shares currently retain a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.