Calfrac’s total purchase price includes about $7m of working capital associated with the ongoing operations of the business.
As part of the agreement, Calfrac will acquire about 157,500 of conventional pumping horsepower, along with blenders, related sand-handling and auxiliary equipment.
The company will also buy three deep capacity coiled tubing units with related fluid and nitrogen pumping units as well as a modern district facility in San Antonio, Texas.
With the addition of locations in Houston, San Antonio and Fairfield, Calfrac is set to gain a foothold in the Texas market.
The company further proposes to transfer a portion of the assets to other active operating areas in the US, and its geographic diversification will allow it the flexibility to redeploy other assets as opportunities arise.
Calfrac chief executive officer Doug Ramsay said the acquisition of the operating assets of Mission is consistent with the company’s strategy of expansion through acquisitions at good valuation metrics.
"Mission provides a platform for Calfrac to enter the Eagle Ford shale region and to assess opportunities in other basins in Texas, while adding high quality fracturing and coiled tubing equipment to other Calfrac operating areas," Ramsay added.
Following to the acquisition, which is expected to close in early October 2013, Calfrac will have about 1,182,500 of conventional pumping horsepower.
