C&J Energy Services said it will acquire Casedhole Holdings and its operating subsidiaries, including Casedhole Solutions, for about $272.5m in cash, to expand in geographic regions in which it is not currently operating.
Texas-based Casedhole offers cased-hole wireline and other services for energy producers in the US.
C&J Energy noted Casedhole strategy and operating model closely resembles the company’s and expands its reach in active US areas, including the Williston and Uinta Basins and the Marcellus, Utica, Avalon and Bone Springs shale plays.
C&J Energy Services president and chief executive officer Josh Comstock said this transaction advances the company’s goal to become a large scale, geographically diversified provider of the most technologically advanced completion services.
"With this acquisition, we are adding best-in-class wireline services to our premium hydraulic fracturing, coiled tubing and pressure pumping offerings, making us one of the few U.S. companies that simultaneously offer each of these completion services to our growing base of customers," he added.
"Together, we will continue to lead our combined teams to provide our respective customers with additional choice in service offerings while maintaining each company’s existing quality of service."
The deal also gives C&J access to assets, including 58 wireline units with an average age of less than three years, and 11 pumpdown units that were added during the past five months including horizontal pumpdown and high pressure, high temperature completion applications.
C&J is funding the deal with $220m from the company’s credit facility that was increased to $400m while the rest will be met from cash on hand.
The transaction is slated for compeltion before June 8, 2012.