The combined company’s well construction solutions will be operated under the Frank’s brand name
Expro provides well flow optimisation and other oil field services. (Credit: Expro Group)
Expro Group has agreed to merge with rival oil services company Frank’s International in an all-stock deal to create a major full-cycle service provider.
As per the merger terms, Expro’s shareholders will be issued 7.272 shares of Frank’s for each share of Expro held.
Post-merger, Expro’s shareholders will hold a stake of around 65% in the combined entity, while Frank’s shareholders will own nearly 35%.
The combined entity, which will retain the Expro name, is expected to generate over $1bn of pro forma annual revenue. The combined company’s well construction solutions will be operated under the Frank’s brand name.
It is poised to have a balance sheet that will be strong and debt-free, a robust order backlog, and an ability to drive through-cycle free cash flow and growth, said the parties.
Frank’s chairman, president, and CEO Mike Kearney said: “After undertaking a thorough process to consider a range of strategic alternatives, we are confident that this transaction presents a compelling opportunity for Frank’s shareholders to benefit from value creation led by returns-focused growth.
“The combination brings scale, improved profitability and free cash flow and, together, we will be better positioned for the industry recovery, of which we are in the early stages.”
Based in The Netherlands, Frank’s trades on the New York Stock Exchange (NYSE). The company offers a variety of tubular running services, tubular fabrication, and specialty well construction and well intervention solutions.
Frank’s has nearly 2,400 employees with operations in nearly 40 countries.
On the other hand, the UK-based Expro has expertise in well flow optimisation. The company is engaged in providing solutions for well testing and appraisal, subsea, well completion and intervention, and production.
Expro has a workforce of around 4,000 people in 50 countries.
Expro CEO Mike Jardon said: “This transaction unites two established industry players to create a leading service provider with an extensive portfolio of capabilities across the well lifecycle.
“Together, Expro and Frank’s will be better positioned to support our customers around the world and navigate industry cyclicality.
“This business combination also allows us to rationalize facilities and other support costs, optimize business processes, capitalize on profitable growth opportunities and create value for shareholders of both companies, particularly as the environment for international projects continues to improve.”
Mike Jardon will be the CEO of the combined company that will be operationally based in Houston, Texas.
Expro said that its position in North Africa, the Middle East, and Asia markets will give significant scope to expand Frank’s footprint in the regions. Likewise, the combined entity will utilise Frank’s position in drilling and completions services in the Americas to provide integrated customer solutions.