The total consideration for CWC included 947,807 Precision common shares, approximately $14 million in cash, plus the assumption of CWC’s net debt of approximately $38 million, excluding transaction costs
Precision Drilling completes acquisition of CWC Energy Services. (Credit: Anita starzycka from Pixabay)
Precision Drilling Corporation (“Precision” or the “Company”) (TSX:PD; NYSE:PDS) is pleased to announce that it has completed its acquisition of CWC Energy Services Corp. (“CWC”). The total consideration for CWC included 947,807 Precision common shares, approximately $14 million in cash, plus the assumption of CWC’s net debt of approximately $38 million, excluding transaction costs. The total transaction value for CWC was approximately $127 million on November 7, 2023.
With the acquisition completed, Precision will begin integrating the two companies, which includes delivering approximately $20 million in expected annual operating synergies and monetizing approximately $20 million from planned excess real estate sales. Including CWC’s rigs, Precision now has 72 active service rigs in Canada, 73 active drilling rigs in Canada and 51 active drilling rigs in the U.S.
Precision’s President and CEO, Kevin Neveu, stated, “We are pleased to have completed this strategic acquisition, which positions Precision as the premier well service provider in Canada and enhances our drilling operations in both Canada and the U.S. With the projected synergies, we expect the transaction to be accretive on a 2024 cash flow per share basis and to support our ongoing deleveraging plan. I am excited to welcome the CWC employees to the Precision team.”
Transaction Details
Precision has acquired all of the issued and outstanding shares of CWC, with each CWC shareholder receiving, at their election (a) 0.002124306 of a Precision share for each CWC share; (b) $0.196668 in cash for each CWC share; or (c) a combination of cash and Precision shares, subject to proration.
Source: Company Press Release