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HOUSTON – Energy services provider Expro (NYSE: XPRO) announced a definitive agreement to acquire Coretrax, a company specializing in drilling tools and wellbore solutions, for approximately $210 million. The transaction is expected to close in the second quarter of 2024 and includes at least $75 million in cash and up to 6.75 million newly issued shares of Expro common stock.
The acquisition strengthens Expro's portfolio in well construction and well intervention and integrity by integrating Coretrax's technology, including the DAV-MX circulation tool, HyPR holesaver, and activated drilling scraper (ADS) The purpose is that. Coretrax's scalable business is known for its versatile deployment capabilities and will complement Expro's service offering.
Expro CEO Michael Jardon expressed enthusiasm for the acquisition, highlighting the complementary nature of Coretrax's services and the potential for technology-enabled services to add value to clients by optimizing drilling efficiency and production. Did. Coretrax CEO John Fraser also expressed optimism about the growth and enhancements from the merger.
The transaction is subject to customary closing conditions and working capital adjustments, with the cash component being adjustable at Xpro's discretion. The stock consideration will be based on the 30-day volume-weighted average price of his Expro prior to the close of trading. Expro is targeting up to $10 million in annual cost synergies within his first 18 months after the acquisition.
This acquisition solidifies Explos' presence in established markets such as Europe, Sub-Saharan Africa, the Middle East and North Africa, while opening new avenues of growth in North America, Latin America and Asia Pacific. It's ready.
Wells Fargo Securities, LLC and CMS Cameron McKenna Nabarro Olswang LLP each advised Expro on the financial and legal aspects of the transaction. Coretrax and Buckthorn Partners have retained Evercore and Sidley Austin as financial and legal advisors.
This strategic move is based on the statement in the press release.
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