FMC to Acquire Pure Energy Services

FMC Technologies, Inc. and Pure Energy Services Ltd. have executed a definitive acquisition agreement under which FMC will acquire Pure for C$11.00 per share in cash, or approximately C$282 million ($285 million).

Based in Calgary, Pure is a leading provider of frac flowback services and an established wireline services provider operating in multiple field locations in both Canada and the US. For the twelve months ended June 30, Pure generated C$282 million of revenue and C$59 million of EBITDAS, with the majority related to frac flowback services.

Under the terms of the acquisition agreement, the acquisition will be accomplished by way of a plan of arrangement pursuant to the Business Corporations Act (Alberta). The proposed arrangement is subject to certain conditions including, the approval by i) the holders of Pure shares and options representing at least two-thirds of votes cast in person or by proxy at the meeting of Pure shareholders to be held to approve the Arrangement; ii) the Court of Queen's Bench of Alberta; and iii) relevant regulatory authorities.

Under the arrangement agreement, Pure has agreed that it will not solicit, initiate or participate in any discussions concerning any other acquisition proposals, subject to the ability of Pure to respond to superior proposals in certain circumstances.

“Consistent with our strategy to grow shale related businesses, we are expanding into flowback services which complement the existing products and services of our Surface Technologies segment,” said John Gremp, FMC's chairman and CEO. “Pure is an industry leader, recognized for their safety and environmental stewardship and the quality of their services – values consistent with our own. By combining the products and services of both companies, we will provide an integrated well site solution which creates client value.”

Kevin Delaney, Pure’s chairman and CEO commented, “Since commencing operations in 2001, Pure has achieved significant growth. Today, we are a premier provider of flowback and wireline services in Canada and the United States. I am proud of the company and thank our loyal employees for their many years of service. We strongly support the transaction and are excited to join forces with FMC to accelerate growth while continuing to provide our customers with superior service in all of our service lines.”