Secure Energy Services Inc., an energy services company, acquired Canadian division of a production chemical business, from US-based multi-national company, for a cash consideration of approximately C$29.8 million (MM) (US$22.36 MM). The transaction has an effective date of April 13, 2017.
The acquisition also includes blending facility, warehousing and yard space in Red Deer, Alberta; research lab facility with H2S certification in Edmonton, Alberta; and network of 16 sales distribution points throughout the Western Canadian Sedimentary Basin. The assets provide services of flow assurance; asset integrity; production optimization; and a variety of fracturing and stimulation products to oil and gas industry.
The acquisition will be integrated into Secure Energy’s Drilling and Production Services division's Production Chemicals business line. The transaction enables Secure Energy to strengthen its business activities in Canada.
Rene Amirault, chairman and CEO of Secure Energy, said, "We are very excited to increase our presence in the production chemicals market, including bringing on a highly-qualified group of experienced and dedicated employees. This Acquisition will allow us to accelerate our growth in the market with new opportunities, a highly valued customer base, key infrastructure and synergies within our existing production chemical business."