Keane Group, a privately held US-based well completion services company, has agreed to acquire the majority of Canada-based Trican Well Service Ltd.'s (TSX: TCW) US assets for total consideration of US$247 million, comprising US$200 million in cash plus a minority interest stake in Keane Group.
With the acquisition, Keane will triple its frac capacity, acquire access to proprietary technology, add applied engineering capabilities, and further expand its service offerings and geographic reach in the US.
With this transaction, Keane will acquire the majority of Trican's US assets, including equipment, key employees, and its engineering capabilities.
With these additional resources, Keane will:
- Grow from 300,000 frac horsepower to over 950,000 available for dispatch
- Acquire access to proprietary technology, engineering capability, and new services lines including cementing, coiled-tubing, nitrogen pumping, and acidizing capabilities
- Expand into additional basins in Texas and the Mid-Continent, while deepening Keane's existing presence in the Permian, Bakken, Marcellus, and Utica basins.
The transaction is expected to close before mid-March 2016, following the completion of customary approvals.
Houlihan Lokey acted as financial advisors, and Schulte Roth & Zabel acted as legal advisors to Keane in this transaction.