Expro to Acquire Coretrax for $210 Million
Expro, a leading well flow management company, has announced its plans to acquire Coretrax, an expandables business, from an investment group led by Buckthorn Partners. The total consideration for the acquisition is approximately $210 million, which comprises $75 million in cash and up to 6.75 million newly issued Expro common shares.
The transaction is expected to be finalized in the second quarter of 2024 and is subject to Expro’s discretion to increase the cash component of the deal. The equity consideration will be based on Expro’s thirty-day volume weighted average price prior to closing.
Strategic Expansion and Cost Synergies
Expro is targeting up to $10 million of annual cost synergies within the first 18 months after the acquisition. By acquiring Coretrax, Expro will be able to expand its portfolio of cost-effective, technology-enabled well construction, intervention, and integrity solutions.
This acquisition will particularly strengthen Expro’s presence in the North and Latin America, Europe and Sub-Saharan Africa, and Middle East and North Africa regions. The integration of Coretrax’s technology offering with Expro’s existing drilling optimization portfolio will provide comprehensive solutions for well construction.
Unlocking Global Growth Opportunities
Coretrax brings its best-in-class expandables business to the table, including the only expandables solution that can be deployed on any of three conveyance systems. This acquisition will enhance Expro’s foothold in Europe, Sub-Saharan Africa, and the Middle East, and open new avenues for growth in North and Latin America, as well as the Asia-Pacific region.
Michael Jardon, CEO of Expro, expressed his excitement about the acquisition, stating that it will add significant value to Expro’s clients through innovative technologies that reduce risk and cost, optimize drilling efficiency, extend well life, and optimize production. He also highlighted the synergies between the two companies’ technology portfolios and their strong positions in the market.
John Fraser, CEO of Coretrax, shared his enthusiasm about the opportunities the acquisition brings for both companies. He emphasized the synergies between their technology offerings and their capabilities to tackle complex well challenges. He looks forward to joining forces with Expro to create greater value for their customers globally.
Strengthening Expro’s Position in the Industry
The acquisition of Coretrax by Expro is expected to strengthen Expro’s position in the industry and bring added value to its clients through innovative technologies and expanded capabilities. With this strategic move, Expro aims to optimize its operational efficiency and deliver enhanced solutions to its customers worldwide.
Analyst comment
Positive news. The acquisition of Coretrax will strengthen Expro’s position in the market and expand its portfolio of cost-effective well construction and intervention solutions. This will result in increased market presence and the potential for growth in multiple regions. The synergies between the two companies’ technology offerings will provide comprehensive solutions for clients, reducing risk and optimizing efficiency. Expect positive market response and potential for increased revenue.
