Energy industry-focused services provider Expro has signed a definitive agreement to acquire Coretrax in a $210m cash and stock deal from a Buckthorn Partners-led investment group.
The transaction includes a minimum of $75m in cash and the issuance of up to 6.75 million new Expro common shares.
Coretrax specialises in performance drilling tools, wellbore clean-up, well integrity and production optimisation solutions.
Expro said the acquisition will broaden its suite of technology-driven solutions for well construction, and well intervention and integrity.
The deal also expands Expro’s geographic presence, especially across North and Latin America, Europe, sub-Saharan Africa, and the Middle East and North Africa.
In the area of well construction, the merger of Coretrax's technological offerings with Expro's drilling optimisation portfolio promises a robust array of solutions.
These include the DAV-MX downhole circulation tool, the HyPR Holesaver for hydraulic pipe recovery and the activated drilling scraper for debris recovery.
For well intervention and integrity, Coretrax contributes its expandables business, boasting the only solution deployable via coil tubing, wireline or drill pipe.
Within the first 18 months, Expro hopes to realise annual run-rate cost synergies of up to $10m through the deal.
Expro CEO Michael Jardon said: “Coretrax has a complementary offering to Expro with little overlap and will bolster the portfolio of technology-enabled services and solutions offered through our Well Construction and Well Intervention & Integrity product lines, adding significant value to our clients from innovative technologies that reduce risk and cost, optimise drilling efficiency, extend the life of existing well stock and optimise production.”
Coretrax CEO John Fraser said: “The synergies between our respective technology portfolios will enable us to grow our market share while significantly increasing our capabilities to tackle the most complex well challenges.”
In November 2023, Expro secured a contract from Norway-based oil and gas company Equinor to provide well-testing services on the Norwegian Continental Shelf.
