Forum Energy Technologies Receives Approval to Proceed with Variperm Acquisition from Canadian Competition Bureau
December 21 2023 - 8:29AM
Business Wire
Forum Energy Technologies, Inc. (NYSE: FET) today announced that
it has received approval from the Canadian Competition Bureau to
proceed with its planned acquisition of Variperm Energy
Services.
FET announced on November 2, 2023, its agreement to acquire
Variperm Energy Services for consideration of $150 million of cash
(subject to customary purchase price adjustments) and 2 million
shares of FET’s common stock, reflecting a valuation of
approximately 3.7x Variperm’s trailing twelve months EBITDA as of
September 30, 2023. The acquisition is expected to be immediately
accretive to FET’s margins and cash flow. At closing, FET’s net
leverage ratio is expected to be 1.9x with liquidity of $142
million.
Closing is expected to occur in January 2024, subject to
satisfaction of customary closing conditions.
FET (Forum Energy Technologies) is a global company, serving the
oil, natural gas, industrial and renewable energy industries. FET
provides value added solutions that increase the safety and
efficiency of energy exploration and production. We are an
environmentally and socially responsible company headquartered in
Houston, TX with manufacturing, distribution and service facilities
strategically located throughout the world. For more information,
please visit www.f-e-t.com.
Forward Looking Statements and Other
Legal Disclosures
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that the
company expects, believes or anticipates will or may occur in the
future are forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release specifically include the company’s ability to
complete the acquisition of Variperm (the “Variperm Acquisition”)
on the timeline or the terms currently contemplated; the ultimate
timing, outcome and results of integrating the operations of
Variperm with FET, including the combined company’s ability to
generate sufficient free cash flow to manage its long-term debt
balances; the company’s ability to realize the full benefits of the
Variperm Acquisition, including the company’s expected
transformation of its profitability and margin profile, on the
anticipated timeline or at all; the expectations of plans,
strategies, objectives and anticipated financial and operating
results of the combined company, including any statement about the
company's future financial position, liquidity and capital
resources, operations, performance, acquisitions (including the
Variperm Acquisition), returns, capital expenditure budgets, new
product development activities, costs, fourth quarter projection of
free cash flow and other guidance included in this press
release.
These statements are based on certain assumptions made by the
company based on management's experience and perception of
historical trends, current conditions, anticipated future
developments and other factors believed to be appropriate. Such
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the company,
which may cause actual results to differ materially from those
implied or expressed by the forward-looking statements. Among other
things, these include potential adverse reactions or changes to
business relationships resulting from the announcement or
completion of the Variperm Acquisition; the significant costs
required to complete the Variperm Acquisition; the diversion of
management attention to transaction-related issues related to the
Variperm Acquisition; the volatility of oil and natural gas prices,
oilfield development activity levels, the availability of raw
materials and specialized equipment, the company's ability to
deliver backlog in a timely fashion, the availability of skilled
and qualified labor, competition in the oil and natural gas
industry, governmental regulation and taxation of the oil and
natural gas industry, the company's ability to implement new
technologies and services; the availability and terms of capital,
and uncertainties regarding environmental regulations or litigation
and other legal or regulatory developments affecting the company's
business; and other important factors that could cause actual
results to differ materially from those projected as described in
the company's filings with the U.S. Securities and Exchange
Commission.
Any forward-looking statement speaks only as of the date on
which such statement is made and the company undertakes no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20231221511506/en/
Rob Kukla Director of Investor Relations 281.994.3763
Rob.Kukla@f-e-t.com
Forum Energy Technologies (NYSE:FET)
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