Expro to acquire Coretrax for $210 million

Expro, a leading provider of energy services, announced today that it had agreed to buy Coretrax, a technology leader in performance drilling tools and wellbore cleanup, well integrity and production optimization solutions, for approximately $210 million.

The deal, which is expected to close in the second quarter of 2024, will enable Expro to expand its portfolio of cost-effective, technology-enabled well solutions, particularly across the North and Latin America, Europe and Sub-Saharan Africa, and Middle East and North Africa regions.

Expro CEO Michael Jardon said the acquisition of Coretrax, which has a 15-year history of innovation, would add significant value to its clients by offering them a comprehensive toolbox of solutions that reduce risk and cost, optimize drilling efficiency, extend the life of existing well stock, and optimize production.

Coretrax CEO John Fraser said he was excited about the opportunities the acquisition brought for his team, and that the synergies between the two companies’ technology portfolios would enable them to grow their market share and increase their capabilities to tackle the most complex well challenges.

The transaction, which is subject to customary closing conditions and working capital adjustments, will be paid with at least $75 million of cash and up to 6.75 million newly issued Expro common shares. The cash component may be increased at Expro’s election, and the equity consideration will be based on Expro’s 30-day average share price prior to closing. Excluding possible cost and revenue synergies, the deal is valued at about 4.7 times Coretrax’s estimated 2024 earnings before interest, taxes, depreciation, and amortization. Expro is targeting up to $10 million of annual cost savings in the first 18 months.

Wells Fargo Securities, LLC is serving as financial advisor to Expro and CMS Cameron McKenna is serving as legal advisor.

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