Secure Energy Services Inc. ("SECURE" or the "Corporation") (TSX – SES) is pleased to announce that effective April 13, 2017, SECURE has completed an acquisition of the Canadian division of a production chemical business from a US-based multi-national company for an aggregate purchase price of approximately CDN$29.8 million, subject to any post-closing adjustments, with consideration paid in cash ("the Acquisition"). The acquired assets will be integrated into our Drilling and Production Services ("DPS") division's Production Chemicals business line. This Acquisition is another step in the continual growth of SECURE's 90+ service solutions at all stages of the oilfield lifecycle.
"We are very excited to increase our presence in the production chemicals market, including bringing on a highly-qualified group of experienced and dedicated employees," said Rene Amirault, Chairman and Chief Executive Officer of SECURE. "This Acquisition will allow us to accelerate our growth in the market with new opportunities, a highly valued customer base, key infrastructure and synergies within our existing production chemical business."
The acquired assets are primarily related to production chemicals products, providing SECURE with a complete suite of over 100 fully formulated proprietary products including:
SECURE has also acquired key infrastructure related to the product offering, which consists of:
SECURE is very pleased to welcome an experienced and dedicated employee base to its team as of April 13th. The continuity of the team will ensure our customer's product and service needs for their ongoing oil and gas production activities will be seamlessly transitioned without interruption.
Our Production Chemicals business line provides solutions that optimize production, provide flow assurance and help our clients maintain the integrity of their production assets. SECURE aims to provide full cycle chemical solutions to our customers, supported by an experienced technical team in our lab facilities in Calgary and Edmonton, Alberta, as well as our diverse field locations.
The production chemicals market has seen steady cumulative annual growth over the last decade, with growth in oil production and associated water being key drivers. New challenges in optimizing production continue to emerge as tight reservoirs require specialized, custom chemical solutions. SECURE's ability to meet this challenge is now bolstered by its addition of advanced specialty chemical products and a sophisticated research lab that will continue to innovate and design customized chemical solutions for customers.
SECURE has added industry leading technology in all facets of flow assurance, asset integrity and production optimization. With this proprietary product portfolio, SECURE has the opportunity for meaningful sales growth in the production, stimulation and fracturing segments. The fracturing market is expected to expand as the market recovers and more wells continue to be drilled and completed.
The Acquisition provides SECURE with 88 experienced employees, with the additional know how and an infrastructure base to augment and accelerate our growth to better serve our customers. SECURE has now acquired a product portfolio with over 17 years of product sales and development in the industry, serving a diversified group of top tier clients.
The Corporation expects the acquisition to be accretive to funds from operations, adjusted EBITDA and net income.
ABOUT SECURE ENERGY SERVICES INC.
SECURE is a TSX publicly traded energy services company that provides safe, innovative, efficient and environmentally responsible fluids and solids solutions to the oil and gas industry. The Corporation owns and operates midstream infrastructure and provides environmental services and innovative products to upstream oil and natural gas companies operating in western Canada and certain regions in the United States ("U.S.").
SOURCE: Secure Energy Services Inc.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.