The acquisition of Greywolf Production Systems for $55.5 million in cash
CALGARY — A private Crossfield-based oilfield services company is being snapped up for $55.5 million US by a Texas company that craves its North Dakota operations.
~Tetra Technologies announced Thursday it will buy Greywolf Production Systems, headquartered in the small town north of Calgary, in an all-cash deal to close at the end of the month.
~Stuart Brightman, Tetra’s president and chief executive, said the takeover will cement the Woodlands, Texas, company’s position as one of the largest frack flowback and well-testing companies in North America.
~The transaction is Tetra’s third in the past six months_
and it takes its cash outlay to about $160 million. Tetra posted revenue in the first quarter of $181 million US.
~In a note to investors, Barclays services analyst James West said the deal will fill a gap in Tetra’s North Dakota Bakken light oil play coverage.
“In addition to its strong Canadian operations, Greywolf is a leading flowback testing company in the Bakken, expanding Tetra’s presence in a key oil/liquids basin,” he wrote.