Expro acquires UK firm to expand well construction and intervention portfolio

Energy services provider Expro has entered into a definitive agreement to acquire Scotland-based well integrity and production optimization company Coretrax, from an investment group led by Buckthorn Partners, for a total consideration of approximately $210 million.

By acquiring Coretrax, Expro said it was targeting the expansion of its portfolio of cost-effective, technology-enabled well construction, as well as well intervention and integrity solutions, especially across the North and Latin America (NLA), Europe, and Sub-Saharan Africa (ESSA) and Middle East and North Africa (MENA) regions. 

The total consideration will be paid at closing and will include a minimum of $75 million in cash and up to 6.75 million Expro common shares. 

The cash component could be increased at Expro’s election, and the notional value of any equity consideration is to be unitized based on Expro’s thirty trading day volume weighted average price (VWAP) before closing, which is expected to take place in the second quarter od 2024.

Without the possible cost and revenue synergies, the total consideration is approximately 4.7x Coretrax’s estimated 2024 adjusted EBITDA. In the first 18 months, Expro is targeting up to $10 million of yearly run-rate cost synergies to be achieved. 

“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,” said John Fraser, CEO of Coretrax. 

“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.” 

Within well construction, combining Coretrax’s field-proven technology offering with Expro’s drilling optimization portfolio provides a comprehensive solutions toolbox. 

The solutions mentioned include the DAV-MX downhole circulation tool, the HyPR Holesaver hydraulic pipe recovery system, and the Activated Drilling Srapper debris recovery system (ADS), according to Expro. 

“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, optimize drilling efficiency, extend the life of existing well stock, and optimize production,” said Michael Jardon, Expro Chief Executive Officer.

To remind, Coretrax expanded its well intervention capabilities by boosting its offering with a complementary technology from Wireline Drilling Technologies. 

Following the acquisition, the well-lifecycle solutions provider secured a batch of new deals. These additions are said to enhance Coretrax’s current well integrity services, allowing the company to handle damaged wellbores and efficiently support highly deviated wells.

In terms of recent news coming from Expro, the company in January secured a contract with INPEX Corporation covering carbon capture utilization and storage (CCUS) for Japan’s first clean hydrogen production demonstration project.