Business
ProFrac Holding Corp. To Acquire U.S. Well Services, Inc.
WILLOW PARK, Texas and HOUSTON, June 21, 2022 /PRNewswire/ -- ProFrac Holding Corp. (NASDAQ: PFHC) ("ProFrac" or the "Company") announced today that it has
About this update from Profrac Holding Corp.
[{"type":"text","content":"WILLOW PARK, Texas and HOUSTON, June 21, 2022 /PRNewswire/ -- ProFrac Holding Corp. (NASDAQ: PFHC) (\"ProFrac\" or the \"Company\") announced today that it has reached an agreement to acquire U.S. Well Services, Inc. (NASDAQ: USWS) (\"USWS\") in a stock-for-stock transaction with an exchange ratio of 0.0561 shares of ProFrac Class A common stock for each share of USWS Class A common stock. The acquisition is expected to be completed in the fourth quarter of 2022, subject to the satisfaction of customary closing conditions, including the approval of USWS stockholders.\nThe combination creates a market leader in NextGen frac solutions and a combined company with an expected 44 active fleets by the end of 2022:\nTransaction expected to expand ProFrac's fleet to 44 active fleets by year end, including 12 electric fleets, 13 Tier IV dual fuel fleets, and 3 Tier IV diesel fleetsCombined company expected to be the largest provider of electric frac services with 12 electric fleetsAccelerates ProFrac's ESG strategy of reducing fuel costs and minimizing its emissions footprintMarries leading edge efficiency and cost structure from ProFrac with the largest electric fleet platform in the industry to deliver exceptional value for the combined company and substantial cost savings to customersProFrac would acquire USWS' industry leading intellectual property portfolio that gave rise to electric frac technology with the market's first e-fleet deployment in 2014, which includes over 110 patentsUSWS Convertible Senior Notes and Series A Redeemable Preferred Shares to be converted into shares of ProFrac Class A common stock at closingCombined company expected to maintain a conservative balance sheet; ProFrac expects to separately finance remaining USWS debt at closingExpected to result in approximately $35 million of annual cost synergies and eliminate ProFrac's expected license fees to USWS of approximately $22.5 million per year over the next four yearsExpected to be accretive to 2023 Adjusted EBITDAMatt Wilks, ProFrac's Executive Chairman, commented, \"The acquisition of U.S. Well Services solidifies ProFrac's position as an industry leader in electric hydraulic fracturing, which we believe represents the future of the industry. In today's environment, we believe electric frac fleets provide improved efficiency, lower R&M costs, greater value, ...