Apr 26 - 28, 2017 - San Francisco, United States
Canadian Energy Services & Technology Corp. is pleased to announce that it has completed the acquisition of all of the production and specialty chemical business assets of Catalyst Oilfield Services, LLC. The acquisition of Catalyst will accelerate the expansion of the Company's US production and specialty chemicals operations with particular focus in West Texas and the Permian Basin. The effective date of the Acquisition is August 1, 2016. Customary to previous acquisitions completed by CES, consideration will be a combination of cash and CES common shares escrowed over a three year period. In addition, key employees of Catalyst have agreed to employment contracts along with non-compete and non-solicit commitments. Established in 2005, and headquartered just outside of Midland Texas in Gardendale, Catalyst is a West Texas based private company that provides production and specialty chemical solutions for a number of leading oil and natural gas companies.
"We are very excited to add the best independent West Texas based production and specialty chemical company to our team," said Tom Simons, President and CEO of CES. "In particular we look forward to working with Catalyst's top-tier leadership and their team. Catalyst has great customers in what we believe is the most prolific on-shore basin in North America. We also see many opportunities and synergies as we combine Catalyst with our JACAM operations. As we stated when we raised equity a few months ago, we hoped we could deploy much of that capital towards an acquisition that would accelerate growth for us in the Permian and advance our drive to be the clear number three oilfield chemical company in North America. By adding Catalyst we think we have accomplished that."
"We are very excited to be joining forces with CES," said Trey Womack, President of Catalyst. "CES shares our same company values and passion for excellence and is an oilfield leader for vertical chemical integration. They have grown by integrating the entrepreneurial spirit of individual companies into an organization that inspires growth through both guided autonomy and supportive cooperation. CES brings to Catalyst tremendous technical support with unique product offerings like solid chemistry and extended control corrosion inhibitors like SuperCorr ® which will benefit our customers tremendously. Our combined locations, products and people create synergies, not duplications."
Catalyst will continue to operate under its current well established brand. Sales and operations will be coordinated and optimized alongside CES's JACAM division. Catalyst will leverage CES' vertical integration and unique technologies like solid chemistry and SuperCorr ® to better meet the needs of its customers.
Catalyst will significantly expand CES' position and market-share of production and specialty chemicals in West Texas, selling into the production, fracturing and pipeline verticals. Catalyst has over 180 customers with particular concentration of both accounts and sales in the Delaware Basin.
CES will add Catalyst's 150 person strong experienced work force and senior leadership with extensive breadth and depth of knowledge and experience in oilfield chemicals.
CES will add Catalyst's low temperature reacting and chemical blending facility located in Gardendale, Texas, as well as 8 other stock points in Texas and New Mexico.
CES will add Catalyst's extensive line of over 300 finished products many of them proprietary and designed for the unique down-hole challenges in West Texas.
CES will add Catalyst's expansive fleet of 62 treater trucks and delivery trucks to ensure reliable operational support of its chemical programs.
CES will add Catalyst's Gardendale laboratory which employs 12 engineers/chemists/technicians to evaluate and develop products. They will support Catalyst's and JACAM's customers and sales force in providing the most cost effective solutions to each application.
CES expects the Catalyst Acquisition to be accretive to CES' cash flow from operations; EBITDAC; and net income.
Source : Canadian Energy Services & Technology Corp.