Energy services firm Expro has struck a £166 million ($210m) deal to buy Aberdeenshire-headquartered drilling tech company Coretrax.
Based out of Portlethen, Coretrax has a headcount of 320 people and has been majority owned by private equity group Buckthorn Partners since 2018.
Expro said the acquisition is “complementary” to its own offering but with “little overlap” and will open up new avenues for growth in areas including the Americas, Europe, Middle East and Africa.
The total amount to be paid for the acquisition is £166m ($210m), including at least £59m ($75m) in cash and up to 6.75 million newly-issued Expro common shares to the investor group led by Buckthorn.
Expro said the deal is expected to close in the second quarter of this year, and it is targeting up to £7.9m ($10m) of annual run-rate cost synergies in the first 18 months.
‘Welcome to the family’
Houston-headquartered Expro said the acquisition of Coretrax will expand its portfolio of “cost-effective, technology-enabled” solutions in well construction and integrity across several markets.
Chief executive Michael Jardon said: “We are thrilled to announce our proposed acquisition of Coretrax, and look forward to welcoming John Fraser and his teammates to the Expro family.
“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 optimize production.”
Growth story for Coretrax and Expro
Coretrax was established in December 2008, with initial investment of about £300,000, some 60% of which was from Clydesdale Bank.
It has since expanded with the acquisition of Churchill Drilling Tools of Aberdeen in 2019 and US-based well specialist Mohawk Energy the following year.
Coretrax chief executive John Fraser said: “I’m excited about the opportunities the acquisition brings for Coretrax and our team.
“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.
“We are proud of the innovation-led approach, strong customer base and performance history that we developed over the last 15 years, and we look forward to joining forces with Expro to create greater value for our customers globally.”
Expro recently marked 40 years of operations in the North Sea, and last year completed the acquisitions of Aberdeen-based well construction specialist DeltaTek and Houston-based PRT Offshore.