Nabors Industries Ltd. (NYSE: NBR) has signed a definitive agreement to combine its completion and production services businesses in the US and Canada with C&J Energy Services Inc. (NYSE: CJES), an independent oilfield services and manufacturing company.
Following the completion of this transaction, Nabors will own approximately 53% of the combined company, which will be incorporated in Bermuda and listed on the NYSE as C&J Energy Services Ltd. In addition to the 62.54 million shares of the combined company, Nabors will also receive $937 million cash, to be paid from proceeds of a public debt placement by the combined company.
The new C&J Energy Services Ltd. will be managed by the current C&J Energy Services management team, supplemented by Nabors' completion and production services workforce. The transaction will roughly triple the C&J stimulation fleet, which should then rank as the fifth largest fleet in North America. The combined company will also operate the largest fluids management fleet and the second largest workover/well-servicing fleet in North America. In addition, prospects for international expansion should be enhanced through a global alliance agreement with Nabors.
The transaction has been approved by the board of directors of both companies and is subject to approval by C&J shareholders and the satisfaction of customary closing conditions and regulatory approvals. It is anticipated that shares in C&J Energy Services Ltd. will be publicly traded under the symbol CJES, pending approval from regulatory authorities.
Goldman, Sachs & Co. and Lazard Ltd. advised Nabors on the transaction. Citigroup and Tudor, Pickering, Holt, & Co. represented C&J Energy Services.