EXPRO announce acquisition of Coretrax

Expro has announced it had entered into a definitive agreement to acquire Coretrax from an investment group led by Buckthorn Partners.

Total consideration to be paid at closing is approximately US$210 million, including at least US$75 million of cash and up to 6.75 million newly issued Expro common shares. The cash component of the proposed transaction may be increased at Expro’s election, and the notional value of any equity consideration will be unitised based on Expro’s thirty trading day volume weighted average price (VWAP) prior to closing, which is expected to occur in the 2Q24. Excluding possible cost and revenue synergies, total consideration is approximately 4.7x Coretrax’s estimated 2024 Adjusted EBITDA. Expro is targeting up to US$10 million of annual run-rate cost synergies to be achieved in the first 18 months.

The acquisition of Coretrax will enable Expro to expand its portfolio of cost-effective, technology-enabled well construction and well intervention an integrity solutions, particularly across the North and Latin America (NLA), Europe and Sub-Saharan Africa (ESSA) and Middle East and North Africa (MENA) regions. Building on Coretrax’s successful 15-year history, the acquisition will accelerate the availability of the company’s tools by leveraging Expro’s global operating footprint.

Within well construction, the combination of Coretrax’s field proven technology offering with Expro’s existing drilling optimisation portfolio provides a comprehensive solutions toolbox. These solutions include the DAV-MX downhole circulation tool, the HyPR Holesaver hydraulic pipe recovery system, and the Activated Drilling Scrapper (ADS) debris recovery system. Within well intervention & integrity, Coretrax’s brings its best-in-class expandables business, which includes the only expandables solution that can be deployed on any of three conveyance systems (coil tubing, wireline or drill pipe).

Michael Jardon, Expro Chief Executive Officer, said: “We are thrilled to announce our proposed acquisition of Coretrax, and look forward to welcoming John Fraser and his teammates to the Expro family. Coretrax has a complementary offering to Expro with little overlap and will bolster the portfolio of technology-enabled services and solutions offered through our well construction and well intervention & integrity product lines, adding significant value to our clients from innovative technologies that reduce risk and cost, optimise drilling efficiency, extend the life of existing well stock, and optimize production.

The integration of Coretrax’s leading technologies will strengthen our foothold in ESSA and MENA where both companies have strong, established positions, and is expected to open new avenues for growth in NLA and Asia-Pacific. We look forward to leveraging the complementary capabilities and customer relationships of Expro and Coretrax to deliver additional value to our customers and other stakeholders."

John Fraser, CEO at Coretrax said: “I’m excited about the opportunities the acquisition brings for Coretrax and our team. The synergies between our respective technology portfolios will enable us to grow our market share while significantly increasing our capabilities to tackle the most complex well challenges. We are proud of the innovation-led approach, strong customer base and performance history that we developed over the last 15 years, and we look forward to joining forces with Expro to create greater value for our customers globally.”

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