Wednesday, 28 February 2024


Expro to acquire Coretrax in $210 million deal By

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© Reuters.

HOUSTON – Energy services provider Expro (NYSE: XPRO) has announced a definitive agreement to acquire Coretrax, a company specializing in drilling tools and well solutions, for a total consideration of approximately $210 million. The transaction, expected to close in the second quarter of 2024, includes at least $75 million in cash and up to 6.75 million newly issued Expro common shares.

The acquisition aims to enhance Expro’s portfolio in Well Construction and Well Intervention & Integrity by integrating Coretrax’s technologies, which include the DAV-MX circulation tool, the HyPR Holesaver, and the Activated Drilling Scrapper (ADS). Coretrax’s expandables business, recognized for its versatile deployment capabilities, will also complement Expro’s service offerings.

Michael Jardon, CEO of Expro, expressed enthusiasm for the acquisition, highlighting the complementary nature of Coretrax’s offerings and the potential for technology-enabled services to add value to clients by optimizing drilling efficiency and production. John Fraser, CEO of Coretrax, also conveyed optimism about the growth and enhanced capabilities resulting from the merger.

The deal is subject to customary closing conditions and working capital adjustments, with the cash component adjustable at Expro’s discretion. The equity consideration will be based on Expro’s thirty-day volume-weighted average price prior to closing. Expro is targeting up to $10 million in annual cost synergies within the first 18 months post-acquisition.

The acquisition is poised to solidify Expro’s presence in established markets such as Europe, Sub-Saharan Africa, and the Middle East and North Africa, while paving new growth paths in North and Latin America and the Asia-Pacific region.

Wells Fargo Securities, LLC and CMS Cameron McKenna Nabarro Olswang LLP are advising Expro on the financial and legal aspects of the transaction, respectively. Coretrax and Buckthorn Partners have engaged Evercore and Sidley Austin as their financial and legal advisors.

This strategic move is based on a press release statement.

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