Business
NESR Agrees to Acquire Action Energy Company Businesses in Kuwait
HOUSTON, TX / ACCESSWIRE / April 1, 2021 / National Energy Services Reunited Corp. ("NESR" or the "Company") (NASDAQ:NESR) (NASDAQ:NESRW), a national,
About this update from National Energy Services Reunited Corp
[{"type":"text","content":"HOUSTON, TX / ACCESSWIRE / April 1, 2021 / National Energy Services Reunited Corp. (\"NESR\" or the \"Company\") (NASDAQ:NESR) (NASDAQ:NESRW), a national, industry-leading provider of integrated energy services in the Middle East and North Africa (\"MENA\") region, today announced a preliminary agreement pursuant to which NESR will acquire specific oilfield service lines (the \"Businesses\") of Action Energy Company W.L.L. (\"Action\"), one of the leading indigenous oilfield services companies in Kuwait with multiple oilfield services contracts across both drilling and production operations. The transaction, comprising oil services contracts in certain services lines worth more than $200 million, is planned to be operationally effective from April 1, 2021. Combining with NESR's existing portfolio, the transaction will position NESR to become a top-tier provider in Kuwait, with operations across the Production and Drilling and Evaluation segments. In addition, by the acquisition of the Businesses, NESR will enter a new service line offering across the region.Under the terms of the agreement, NESR will acquire the Businesses with cash consideration of approximately $36 million paid at closing and an additional cash payment of approximately $13 million paid six months following the initial closing, subject to certain conditions, for total cash consideration of around $50 million. The agreement also includes additional earnouts of approximately $2 million to be paid over the contracts' terms. The transaction implies a multiple of less than 4 times EBITDA and is expected to close during the second quarter of 2021.Sheikh Mubarak A. M. Al Sabah, Vice Chairman, Action Group Holdings (KSCC) and Chairman, Action Real Estate Company (KSCC), commented, \"we have been an innovative industry leader and blazed a new path in every business we have undertaken, the latest is that of Oil Services. I am very pleased to see the culmination of these discussions and for NESR to take over these businesses which we have seeded and grown in such a short period.\" Sheikh Mubarak A. M. Al Sabah added, \"I believe with NESR's expertise, regional scale, and technology portfolio, in conjunction with the team and business we have built-in Action, the oil services space in Kuwait will tremendously benefit from this partnership, and I wish them the best of luck ...