Oil and gas service company Expro Group has signed an all-stock deal with rival Frank’s International to merge and create a major full-cycle service provider.
Under the agreement, Expro’s shareholders will be entitled to 7.272 shares of Frank’s for each share held in Expro.
Upon completion of the merger, Expro’s shareholders will have a 65% stake in the combined entity while Frank’s shareholders will own the remaining 35% interest.
The combined entity will retain the Expro name and is expected to generate more than $1bn of pro forma annual revenue. Frank’s brand name will be retained for well construction solutions.
Frank’s chairman, president, and CEO Mike Kearney said: “After undertaking a thorough process to consider a range of strategic alternatives, we are confident that this transaction presents a compelling opportunity for Frank’s shareholders to benefit from value creation led by returns-focused growth.
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By GlobalData“The combination brings scale, improved profitability and free cash flow and, together, we will be better positioned for the industry recovery, of which we are in the early stages.”
The combined company will bring together two companies’ capabilities in well construction, flow management and intervention, as well as subsea well access, and production services.
The deal is expected to be completed in the quarter ending 30 September following shareholder and regulator approval.
Expro CEO Mike Jardon said: “This transaction unites two established industry players to create a leading service provider with an extensive portfolio of capabilities across the well lifecycle.
“This business combination also allows us to rationalise facilities and other support costs, optimise business processes, capitalise on profitable growth opportunities and create value for shareholders of both companies, particularly as the environment for international projects continues to improve.”
Based in the Netherlands, Frank’s offers a variety of tubular running services, tubular fabrication, and speciality well construction and intervention solutions.
Employing nearly 2,400 people, Frank’s has operations in around 40 countries.
UK-based Expro has expertise in well flow optimisation. It is engaged in providing solutions for well testing and appraisal, subsea, well completion and intervention, and production.
