Opérations et transactions|15 juillet 2013
Canadian Energy Services announces acquisition of Permian drilling fluids company, Venture Mud One, L.P.
Torys acted as counsel to Canadian Energy Services with a team that included Scott Cochlan, Janan Paskaran and Matthew Lui.
On July 15, 2013, Canadian Energy Services & Technology Corp. (Canadian Energy Services) announced that it acquired the drilling fluids business assets of Venture Mud One, L.P. (Venture Mud) and certain additional assets from affiliates of Venture Mud including VM Transports, LLC, Venture Services, LLC, and Venture Services RM, LLC.
As part of the acquisition, effective July 1, 2013, Canadian Energy Services acquired approximately US$6 million of drilling fluids and product inventory and approximately US$12 million of fixed assets consisting of real estate, trucks and equipment.
The total purchase price is approximately US$55.2 million, of which on close approximately US$12.7 million is payable in common shares of Canadian Energy Services (approximately 838,076 common shares) and the balance US$42.5 million is to be paid in cash of which US$19.5 million is payable on transaction date. Included in the cash consideration is US$18 million which is payable as an earn-out upon the Venture Mud division achieving certain EBITDA thresholds over a twenty-four month period post close.
Venture Mud One, L.P. is a West Texas based private drilling fluids company that provides drilling fluid solutions for a number of leading oil and natural gas companies with a focus on the Permian Basin.
Canadian Energy Services & Technology Corp. business is focused on the design and delivery of technically advanced fluids for the North American oil and gas industry.
Further information can be found on Marketwire's website.
As part of the acquisition, effective July 1, 2013, Canadian Energy Services acquired approximately US$6 million of drilling fluids and product inventory and approximately US$12 million of fixed assets consisting of real estate, trucks and equipment.
The total purchase price is approximately US$55.2 million, of which on close approximately US$12.7 million is payable in common shares of Canadian Energy Services (approximately 838,076 common shares) and the balance US$42.5 million is to be paid in cash of which US$19.5 million is payable on transaction date. Included in the cash consideration is US$18 million which is payable as an earn-out upon the Venture Mud division achieving certain EBITDA thresholds over a twenty-four month period post close.
Venture Mud One, L.P. is a West Texas based private drilling fluids company that provides drilling fluid solutions for a number of leading oil and natural gas companies with a focus on the Permian Basin.
Canadian Energy Services & Technology Corp. business is focused on the design and delivery of technically advanced fluids for the North American oil and gas industry.
Further information can be found on Marketwire's website.