Expro Bolsters Well Construction and Intervention Offer with Coretrax Buy
Oilfield services provider Expro has entered into a definitive agreement to acquire well integrity and production optimization company Coretrax from an investment group led by Buckthorn Partners for $210 million.
Subject to customary closing conditions and working capital adjustments, the agreement covers total consideration to be paid at closing of approximately $210 million, including at least $75 million of cash and up to 6.75 million newly issued Expro common shares.
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, which is expected to occur in the second quarter of 2024.
The acquisition of Coretrax will enable Expro to expand its portfolio of technology-enabled well construction and well intervention and integrity solutions, particularly across the North and Latin America, Europe and Sub-Saharan Africa and Middle East and North Africa regions.
Building on Coretrax’s successful 15-year history, the acquisition will accelerate the availability of the company’s high value-adding tools by leveraging Expro’s global operating footprint.
Within well construction, the combination of Coretrax’s technology offering with Expro’s existing drilling optimization portfolio provides a comprehensive solutions toolbox.
These solutions include the DAV-MX downhole circulation tool, the HyPR Holesaver hydraulic pipe recovery system, and the Activated Drilling Scrapper (ADS) debris recovery system.
Within well intervention and integrity, Coretrax’s brings its best-in-class expandables business, which includes the only expandables solution that can be deployed on any of three conveyance systems (coil tubing, wireline or drill pipe).
“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,” said John Fraser, CEO at Coretrax.