US based water solutions provider Select Energy Services has agreed to merge with Rockwater Energy Solutions in an all stock deal.

Under the agreement, Select will offer 37.95m shares of common stock in exchange for Rockwater’s all outstanding shares of common stock.

On completion of the transaction, Select shareholders will hold around 64.4% of the combined entity and Rockwater shareholders will own the remaining 35.6%.

The combined entity’s all water related services will be rebranded under Select Energy Services and chemicals business unit of Rockwater will retain its brand.

The transaction, subject to customary closing conditions and the US governmental approval, will close in the third quarter of 2017.

Prioir to the agreement, Select has secured a five-year asset backed revolving loan (ABL) facility of $150m from one of its lenders.

Rockwater delivers water management solutions such as water sourcing, transfer, treatment and storage, flowback and well testing, fluids conditioning and recycling, and field fluids logistics to oil and gas industries across North America.

Select Energy Services CEO and chairman John Schmitz said: “As we are experiencing a strong recovery in many of our markets, we have the opportunity to combine our equipment, management teams, and over 3,200 field personnel to provide more comprehensive services to our customers. I believe the combined expertise and scale we are creating in this merger will generate substantial benefits for Select and our shareholders.”

Rockwater chairman, president and CEO Holli Ladhani said:  “We are combining two entrepreneurial companies with similar cultures and aspirations. Our service lines are very complementary and as the industry continues to relentlessly increase frac intensity, the demand for creative solutions to water-related issues is expected to grow significantly as well. We intend to be at the forefront in providing those solutions.”