Frank’s International has announced a merger with UK-based oil service company Expro.
The all-stock deal will create a major full-cycle service provider. Expro’s shareholders will receive 7.272 shares of Frank’s for each share of Expro held, which will bring Expro shareholders a stake of about 65% of the company after the merger is complete. Frank’s shareholders will own about 35%.
The combined entity will retain the Expro name with the company’s well construction solutions still operated under the Frank’s brand name. The company is expecting to operate debt-free with a robust order backlog and the ability to drive through-cycle free cash flow and growth.
Frank’s chairman, president, and CEO Mike Kearney said:
“After undertaking a thorough process to consider a range of strategic alternatives, we are confident that this transaction presents a compelling opportunity for Frank’s shareholders to benefit from value creation led by returns-focused growth.
“The combination brings scale, improved profitability and free cash flow and, together, we will be better positioned for the industry recovery, of which we are in the early stages.”
Expro CEO Mike Jardon said:
“This transaction unites two established industry players to create a leading service provider with an extensive portfolio of capabilities across the well lifecycle.
“Together, Expro and Frank’s will be better positioned to support our customers around the world and navigate industry cyclicality.
Source:
https://investor.franksinternational.com/news-releases/news-release-details/expro-and-franks-combine-create-leading-full-cycle-service
