Calfrac Announces Acquisition of Assets of Mission Well Services, LLC

About this update from Calfrac Well Services Ltd.

[{"type":"text","content":"\n\n\nCALGARY, Sept. 6, 2013 /CNW/ - Calfrac Well Services Ltd. (\"Calfrac\") (TSX-CFW) and Mission Well Services, LLC (\"Mission\") are pleased to announce that they have entered into a definitive\n agreement (the \"Agreement\") pursuant to which Calfrac has agreed to acquire all of the operating\n assets of Mission (the \"Assets\"), a privately-held hydraulic fracturing and coiled tubing services\n provider focused in the Eagle Ford shale region of Texas (the \"Acquisition\").  Under the terms of the Agreement, Calfrac's total purchase price\n will be approximately US$147 million, which includes approximately US$7\n million of working capital associated with the ongoing operations of\n the business.\n\n\nThe Acquisition will preempt a portion of Calfrac's 2014 capital\n expenditure program, which is expected to include similar equipment.\n The purchase price is approximately equal to the net book value of the\n Assets and represents a discount to replacement value. Calfrac will\n acquire approximately 157,500 of conventional pumping horsepower, along\n with high-rate blenders, related sand-handling and auxiliary equipment,\n three deep capacity coiled tubing units with related fluid and nitrogen\n pumping units and a modern district facility in San Antonio, Texas.  \n\n\nAs part of the Acquisition, Calfrac will gain a foothold in the Texas\n market with the addition of locations in Houston, San Antonio and\n Fairfield. Calfrac is assuming certain commitments with key suppliers\n of Mission and will be offering employment to a significant portion of\n Mission's employee base in order to continue to serve Mission's\n customers following the completion of the Acquisition. Calfrac intends\n to transfer a portion of the Assets to other active operating areas in\n the United States, and Calfrac's geographic diversification will allow\n it the flexibility to redeploy other assets as opportunities arise.\n\n\nDoug Ramsay, Chief Executive Officer of Calfrac, stated \"The acquisition\n of the operating assets of Mission is consistent with Calfrac's\n strategy of disciplined expansion through attractive acquisitions at\n good valuation metrics and through organic growth opportunities.\n Mission provides a platform for Calfrac to enter the Eagle Ford shale\n region and to assess opportunities in other basins in Texas, while\n ad...

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