Forum Energy Technologies Agrees To Acquire Variperm Energy Services For $150M Cash And 2M Shares Of FET's Common Stock
Benzinga Newsdesk 3 years ago
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Forum Energy Technologies has entered into a definitive agreement to acquire Variperm Energy Services ("Variperm") for consideration of $150 million of cash and 2 million shares of FET's common
Forum Energy Technologies has entered into a definitive agreement to acquire Variperm Energy Services ("Variperm") for consideration of $150 million of cash 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 transaction is expected to close in January 2024 and is subject to customary closing conditions and Canadian regulatory approval.
Combined Company Financial Highlights 1
- Revenue: $873 million, an increase of 17%
- Adjusted EBITDA: $121 million, an increase of 77%
- Adjusted EBITDA margin: 14%, an increase of 470 basis points
- Operating cash flow: $47 million, an increase of 292%
- Free cash flow: $70 million, an increase of 84%
Mr. Lux continued, "Importantly, our balance sheet remains strong following this transaction. At closing, we expect our net leverage ratio to be 1.9x with liquidity of $142 million. We expect this to provide ample capital to fund and grow the combined business. Consolidated 2024 free cash flow and EBITDA growth is expected to reduce net leverage to between 1.0x and 1.3x by the end of 2024."