(Calgary) Precision Drilling announced Thursday that it has agreed to acquire CWC Energy Services in a deal valued at approximately $141 million, consisting of cash, stock and debt assumption.
Precision CEO Kevin Neveu said the deal results in an expansion of his company’s services in both Canada and the United States, with high-quality equipment and ground.
The acquisition will give Precision 62 marketed service rigs and seven marketed drilling rigs in Canada, as well as 11 marketed drilling rigs in the United States.
Under the deal, which requires a green light from CWC shareholders and other approvals, Precision will pay a total of 947,909 shares of Precision stock and approximately $14 million in cash, while also assuming CWC’s debt.
The implied price of the offer is 19.7 cents per CWC share, based on Precision’s closing stock price on September 1.
CWC shares closed at 20.5 cents on the TSX Venture Exchange on Wednesday.
