HOUSTON, Jan. 26, 2016 /CNW/ -- Keane Group, a
privately-held U.S. based well completion services company, has
agreed to acquire the majority of Canada-based Trican Well Service Ltd.'s (TSX:
TCW) U.S. assets for total consideration of U.S. $247 million, comprised of U.S. $200 million in cash plus a minority interest
stake in Keane Group. With the acquisition, Keane will triple its
frac capacity, acquire access to proprietary technology, add
applied engineering capabilities and further expand the Company's
service offerings and geographic reach in the U.S.
"This acquisition will significantly strengthen Keane's position
as a leader in the completion services business across all key US
basins," said James Stewart, Keane
Group Chairman and CEO. "With our expanded capabilities, Keane
Group will have significantly greater scale that will enable us to
provide all customers cost-effective completion services that will
maximize the return on their assets in the current low commodity
price environment. With a strong balance sheet and scalable
platform positioned for continued growth, Keane looks forward to
playing an active role in further industry consolidation."
With this transaction, Keane will acquire the majority of
Trican's U.S. assets, including equipment, key employees and its
With these additional resources, Keane will:
- Grow from 300,000 frac horsepower to over 950,000 available for
- Acquire access to proprietary technology, engineering
capability and new services lines including cementing,
coiled-tubing, nitrogen pumping, and acidizing capabilities.
- Expand into additional basins in Texas and the Mid-con, while deepening Keane's
existing presence in the Permian, Bakken, and
"We are pleased to add to our company the capabilities of one of
the leaders in the U.S. oil and natural gas completion services
industry," Stewart continued. "Working with the Trican team, we
will ensure uninterrupted service to Trican U.S.'s and Keane
Group's existing customers, and looking forward, will be able to
provide them and our future customers with expanded offerings. What
will not change is Keane Group's unrelenting focus on health,
safety, environmentally responsible practices, and delivering
operationally efficient solutions to our customers."
The transaction is expected to close before mid-March 2016, following the completion of
Houlihan Lokey acted as financial
advisors and Schulte Roth &
Zabel acted as legal advisors to Keane in this transaction.
ABOUT KEANE GROUP
Headquartered in Houston, TX,
Texas Keane Group provides
hydraulic fracturing, wireline and top-hole air drilling services
to the oil and gas industry across projects in the
Marcellus/Utica, Permian and
Bakken basins. With an unwavering focus on safety, operational
excellence and corporate citizenship, the Company has been
delivering industry-leading service to customers since 1973.
ABOUT TRICAN WELL SERVICE LTD.
Headquartered in Calgary,
Alberta, Trican provides a comprehensive array of
specialized products, equipment and services that are used during
the exploration and development of oil and gas reserves.
To view the original version on PR Newswire,
SOURCE Keane Group