W&W offers Maintenance, Repair & Overhaul and Pipeline tie-in services in the Permian Basin
Petrofac to acquire W&W energy services. Photo: courtesy of Petrofac Limited.
Petrofac Limited (“Petrofac”) announces it has signed a Sale and Purchase Agreement with the shareholders of W&W Energy Services (“W&W”) to acquire an entry-level position in the US onshore Operations and Maintenance market.
W&W offers Maintenance, Repair & Overhaul and Pipeline tie-in services in the Permian Basin, the world’s largest producing basin. This bolt-on acquisition is in line with Petrofac’s stated strategy to position Engineering & Production Services (“EPS”) for growth by diversifying into new markets and geographies.
Transaction consideration comprises firm and deferred cash payments, aggregating to a total consideration of 4.5x average W&W EBITDA for the period 2019-21. Petrofac will pay an initial cash consideration of US$22 million on completion. Deferred true-up and earn-out payments will be paid based on W&W’s financial performance over the three-year period ended 31 December 2021.
John Pearson, Chief Operating Officer, Engineering and Production Services, said:
“This bolt-on provides a platform to grow EPS using a low-risk reimbursable services model in the US onshore services market. As production volumes, infrastructure support requirements and the activity of major operators rise in the Permian, we are confident that the combination of W&W’s footprint and strong local brand with Petrofac’s Engineering and Modifications capability and global track record can unlock growth.”
Source: Company Press Release