Canadian Energy Services to buy assets of US-based co
Tuesday, June 22, 2010 at 08:12PM Says to buy assets of US based Fluids Management II Ltd
Will pay about $65 mln in cash and stock
June 22 (Reuters) - Canadian Energy Services and Technology Corp (CEU.TO) said it agreed to buy all of the drilling fluids business and certain other assets of U.S.-based Fluids Management II Ltd for $65 million, in a cash and stock deal, to expand in the United States.
Under the terms of the deal, Canadian Energy Services will pay $40.5 million in cash and about $19.5 million in shares, it said in a statement.
The final $5 million is payable as an earn-out upon the FMI division achieving an EBITDA target of $9.5 million for the 12 month period post close, the company said. FMI is a Houston-based, private, full-service drilling fluids company which designs, manufactures and implements drilling fluid systems for oil and gas operators in the US.
Canadian Energy Services will acquire about $9 million of drilling fluids and product inventory and about $8.9 million of fixed assets consisting of real estate and equipment, it said.
The company also said it would fund the deal by raising about C$45 million through bought deal financing. It would offer 2.9 million subscription receipts at C$15.50 per receipt, Canadian Energy Services added.
The acquisition is expected to close on or about June 30.
Shares of the company closed at C$16.92 Tuesday on the Toronto Stock Exchange.
NOTICE - All Rights Reserved Except as Stipulated Below. PHOTOS MAY NOT BE REPRODUCED IN ANY FORM. Our reporters and journalists break or report stories and their sources and information are protected by the doctrine of free press as expressed in the First Ammendment, Reporters Privilege Statutes, and also the Canadian Charter of Rights and Freedoms.This article if a feature or opinion piece is the opinion of the author or reports the news and opinions of others and is NOT INTENDED TO OFFER ADVICE. FOR OPINION STORIES: This story/article/ feature may be an opinion piece — and should be treated accordingly — or reporting on the opinions of others, and should never be considered as a sole source of information or as a suggestion, instruction or prescription. FOR CRIME STORIES: always read the word "allegedly" in any story mentioning "suspects" or "persons of interest". FOR BUSINESSS AND MONEY STORIES: For money/ trade and exchange stories, this magazine and its writers accept no responsibility for accuracy — always check with other sources for important decisions. FOR HEALTH AND LIFESTYLE STORIES: In the case of food/health stories, these facts have not been evaluated by the United States Food and Drug Administration (FDA). Information stated here should be NOT be considered as medical, health, psychological or behavior advice. All information in this story and on this site is provided for educational or entertainment purposes ONLY. Always seek the advice of experts, including doctors for medical opinions. Only a licensed medical doctor can offer medical advice. FOR EXPERT, ADVICE OR HOW-TO STORIES: Legal advice or other expert advice is best referred to experts in their respective fields. NO RESPONSIBILITY: The publishers and editors, authors, researchers, employees, heirs and assigns accept no responsibility whatsoever for any advice, facts, opinions in this story, nor for resulting actions of readers of this information. ALL READERS ACCEPT THAT THIS INFORMATION IS PRESENTED ONLY AS NEWS, EDUCATION, ENTERTAINMENT OR OPINION/INFORMATION AND AGREE IN READING THIS STORY OR THIS SITE THAT USE OF THIS INFORMATION IS SOLELY THE RESPONSIBILITY OF THE READER. Copyright by the byline author unless otherwise indicated. EXCERPTS from other magazines or media sources are posted under fair use doctrine, on the basis of no more than 5-10% of content with links and credit to source for the complete story. These are posted in the interest of providing interesting links (description as excerpt) with navigation to the source. Likewise, we encourage our many subscribers to excerpt with credit and links to our e-zines, up to 10% of content. To use more content than 10%, please contact the e-zine for permission. ALL RIGHTS RESERVED except as stipulated herein. IMPORTANT: this web content also includes a forum and comments function, which allows for posting from users not employed by this publication. We accept no responsibility for posts, content, language or accuracy of posts from outside parties but will attempt to correct any inaccuracies reported within the context of free speach. Where possible, spam, lewd or obscene comments WILL BE REMOVED.
Persona Corp. and Blogertize publishes several webzines, magazines, e-zines for news, entertainment and information, but cautions readers to read the NOTICE above:
* Secure Network News Sponsored Advertisers Jameson Bank – Canada's "It's Taken Care Of" Bank Amer.com – Technology for Life
Reader Comments