(OET) UK-headquartered energy services provider Expro has entered into a definitive agreement to acquire the Houston-based offshore services provider, PRT Offshore, which will enable it to enhance its portfolio of services and solutions within the subsea well access sector in North and Latin America (NLA). This will also boost PRT Offshore’s surface equipment offerings in Europe, Sub-Saharan Africa, and Asia Pacific.
According to Expro, the total consideration to be paid at the closing of this acquisition is approximately $106 million, including $62 million of cash and $44 million of newly issued shares. In addition, potential additional consideration will be based on PRT Offshore’s financial performance during the four quarters following closing.
Michael Jardon, Expro Chief Executive Officer, commented: “Expro is committed to investing in innovation and technology to differentiate our services and solutions offering. This strategic acquisition is exciting for both Expro and PRT Offshore as we strengthen and expand our subsea well access technology offering and continue to deliver value to our customers across the life of their wells.
“Our subsea well access portfolio has a strong and established international presence, particularly across ESSA and APAC. We believe this will provide significant opportunities to expand PRT Offshore’s presence in these attractive regions. Similarly, Expro will leverage PRT Offshore’s strong position in deepwater offshore well completion and intervention throughout the NLA region to deliver integrated customer solutions.”
Excluding possible cost and revenue synergies, the total consideration is expected to be around 4.0x PRT Offshore’s estimated 2023 and 2024 adjusted EBITDA. The closing of the acquisition is expected to be in the fourth quarter of 2023.
“Building on Expro’s 40-year track record in subsea, we feel confident PRT’s offering and expertise will complement our existing technology and result in improved services, enhanced solutions, and an even more robust geographic presence. We look forward to welcoming PRT Offshore team to the Expro family,” added Jardon.
PRT Offshore provides a complete Hook-to-Hanger solution, enabling comprehensive well completions, interventions, and decommissioning services from surface to subsea. This system is designed to allow customers to access the wellbore safely and efficiently, all while reducing personnel on board. PRT Offshore employs approximately 90 people across Texas and Louisiana.
RBC Capital Markets is serving as the exclusive financial advisor to Expro and Womble Bond Dickenson is acting as legal counsel on the transaction, which is subject to customary closing conditions and working capital adjustments.
Recently, Expro won a contract for the first deployment of its single-valve subsea solution. Prior to this, the company secured a new contract with Harbour Energy for a well abandonment campaign as part of a decommissioning project on the UK Continental Shelf.