Patterson-UTI Completes Acquisition Of Multi-Shot From Denham Capital And NGP Energy Capital For US$262.5 Million

Published: Sep 05 2017
Deal Summary

Patterson-UTI Energy, Inc., an oilfield services company, completed the acquisition of Multi-Shot, LLC (dba MS Energy Services), a provider of drilling services, from Denham Capital Management LP and NGP Energy Capital Management, L.L.C, both private equity firms, for a purchase consideration of US$262.5 million (MM).

Under the terms, Patterson-UTI financed the consideration through the payment of US$75 MM in cash, and the remaining through 8,798,391 shares, worth US$187.5 MM, based on the most recent closing price of Patterson-UTI common stock of US$21.31. Patterson-UTI paid the cash portion of the consideration through cash on hand and under its revolving line of credit.

Multi-Shot provides directional drilling services such as directional drilling, downhole performance motors, directional surveying, measurement while drilling, and wireline steering tools.

Simmons & Company International Ltd acted as financial advisor to Denham Capital and NGP Energy Capital in the transaction. Vinson & Elkins LLP acted as legal advisor to Multi-Shot, Denham Capital, and NGP Energy Capital in the transaction.

The transaction enables Patterson-UTI to expand its service offerings. Denham Capital Management and NGP Energy Capital Management intend to use the proceeds from the sale to repay their outstanding debt.

Andy Hendricks, CEO of Patterson-UTI, said, "I would like to welcome the employees of Multi-Shot Energy to Patterson-UTI Energy. Their hard work and dedication combined with a strong technology focus has grown Multi-Shot Energy into a leader in US onshore directional drilling services, and we are excited to have them join our team."

Deal history

Completed: On October 11, 2017, Patterson-UTI completed the acquisition of Multi-Shot, from Denham Capital and NGP Energy Capital, for a purchase consideration of US$262.5 MM.

Announced: On September 5, 2017, Patterson-UTI entered into an agreement to acquire Multi-Shot, from Denham Capital and NGP Energy Capital, for a purchase consideration of approximately US$215 MM.

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