Oil States International, through its subsidiary PTI Group, has purchased all of the operating assets of Mountain West Oilfield Service and Supplies, and Ufford Leasing (Mountain West).
Headquartered in Vernal, Utah, with operations in the Rockies and the Bakken Shale region, Mountain West provides remote site workforce accommodations to the oil and gas industry.
For the twelve months ended 30 November 2010, Mountain West generated approximately $24m of revenues.
Total consideration for the acquisition consisted of $43m in cash, an earnout agreement and a $4m promissory note.
Cash consideration was funded under Oil States’ credit facility.
Any payments under the earnout agreement will be determined by the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) generated by the business during the three years subsequent to the transaction closing date.