Energy service provider Expro is acquiring drilling and well technology firm Coretrax from an investment group led by Buckthorn Partners.
The total consideration to be paid at closing is approximately $210 million, including at least $75 million of cash and up to 6.75 million newly issued Expro common shares, the Houston-based company said in a news release Monday. The transaction, expected to close in the second quarter, is subject to customary closing conditions and working capital adjustments.
The cash component of the proposed transaction may be increased at Expro’s election, and the notional value of any equity consideration will be unitized based on Expro’s thirty trading day volume weighted average price prior to closing, according to the release. The company said it is targeting up to $10 million of annual run-rate cost synergies to be achieved in the first 18 months.
Coretrax provides performance drilling tools and wellbore cleanup, well integrity and production optimization solutions. The acquisition will enable Expro to expand its portfolio of cost-effective, technology-enabled well construction and well intervention and integrity solutions, particularly across the North and Latin America (NLA), Europe and Sub-Saharan Africa (ESSA) and Middle East and North Africa (MENA) regions. Building on Coretrax’s successful 15-year history, the acquisition will accelerate the availability of the company’s innovative, high value-adding tools by leveraging Expro’s global operating footprint, it said.
“We are thrilled to announce our proposed acquisition of Coretrax, and look forward to welcoming John Fraser and his teammates to the Expro family”, Expro CEO Michael Jardon said. “Coretrax has a complementary offering to Expro with little overlap and will bolster the portfolio of technology-enabled services and solutions offered through our Well Construction and Well Intervention & Integrity product lines, adding significant value to our clients from innovative technologies that reduce risk and cost, optimize drilling efficiency, extend the life of existing well stock, and optimize production”.
“The integration of Coretrax’s leading technologies will strengthen our foothold in ESSA and MENA where both companies have strong, established positions, and is expected to open new avenues for growth in NLA and Asia-Pacific. We look forward to leveraging the complementary capabilities and customer relationships of Expro and Coretrax to deliver additional value to our customers and other stakeholders”, Jaron added.
“I’m excited about the opportunities the acquisition brings for Coretrax and our team”, Coretrax CEO John Fraser said in a separate statement. “The synergies between our respective technology portfolios will enable us to grow our market share while significantly increasing our capabilities to tackle the most complex well challenges. We are proud of the innovation-led approach, strong customer base and performance history that we developed over the last 15 years, and we look forward to joining forces with Expro to create greater value for our customers globally”.
“Our talented workforce has been instrumental to our growth to date, and I’d like to take this opportunity to thank each of them for their continued support, hard work and dedication as we continue to build on our success”, Fraser concluded.
Coretrax noted that it had experienced a period of sustained growth following an investment from private equity firm Buckthorn Partners in 2019.
Buckthorn Partners describes itself as a United Kingdom (UK) investment company focused on acquiring and growing energy products and services businesses involved in the energy transition. Since 2014, Buckthorn has made 18 investments across six platforms, providing portfolio companies with industry experience, a broad industry network, primary capital, M&A expertise and strategic advice.
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