LONDON, UK / ACCESSWIRE / February 16, 2018 / Active-Investors.com has just released a free research report on TETRA Technologies, Inc. (NYSE: TTI). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TTI as the Company's latest news hit the wire. On February 14, 2018, the Company announced the acquisition of SwiftWater Energy Services, LLC ("SwiftWater"). The Company signed the Equity Interest Purchase Agreement with stakeholders of SwiftWater to acquire all its issued and outstanding shares. The offer is valued approximately $40 million in cash plus 7,772,021 TETRA's shares. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Commenting on the acquisition of SwiftWater, Stuart M. Brightman, CEO of TETRA, said:
"We see excellent synergies with nominal customer overlap between our and SwiftWater's operations in the Permian Basin, and both Companies continue to see strong demand for water management solutions, creating excellent opportunities for cross-selling products and services. The acquisition of SwiftWater is expected to provide our customers an enhanced, more efficient, diverse, and strategically positioned portfolio of services."
Details of the acquisition
As per the terms of the agreement, TETRA has agreed to pay approximately $40 million in cash plus 7,772,021 TETRA's shares. TETRA's shares have a par value $0.01 per share and will be payable at the time of closing of the deal. TETRA's shares were valued at $3.86 per share. The deal includes any negotiated representations, warranties, and covenants owned by sellers of SwiftWater's stake. The stakeholders selling SwiftWater's shares also have the right to receive total earnout payments of up to $15 million. The earn-out payment is calculated on the earnings before interest, tax, depreciation, and amortization (EBITDA) and revenue of the combined water management, production testing and fluids businesses of both SwiftWater and of TETRA in the Permian Basin for the period between January 01, 2018, to December 31, 2019. The Company has the option of paying the earnout in cash or in equivalent TETRA's shares.
The deal is expected to close in the coming weeks after the completion of customary closing conditions and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Act. Until the time of closing of the deal, both companies will continue to operate their business independently.
Benefits of the acquisition
The Company expects that SwiftWater's adjusted EBITDA to be between $16 million to $20 million for the 12 months following the closing of the acquisition excluding any synergies resulting from the deal. TETRA expects that the deal will be immediately accretive to its earnings per share, cash flow per share, and free cash flow basis during FY18. TETRA also expects to benefit from the synergies resulting from the consolidation of operations of the two companies. The deal allows TETRA to expand its portfolio of Water Management related products and services and increase its market share in the Permian Basin, one of the fastest growing basins for oilfield services globally.
About SwiftWater Energy Services, LLC
Founded in 2013, Midland, Texas-based SwiftWater provides water management and water solutions Company. The Company provides a diverse range of water management equipment and services to oil and gas operators in the Permian Basin market. Its services include layflat hose water transfer, water treatment, above-ground water storage for fresh and produced water applications, secondary frac tank containment, poly pipe, pit lining rentals, and supporting ancillary equipment It has three locations and offers seven service lines and is supported by a team of 300 employees. Some of the largest oil companies in the world are clients of SwiftWater.
About TETRA Technologies, Inc.
The Woodlands, Texas-based TETRA is a geographically diversified oil and gas services company. Its business is focused on completion fluids and associated products and services, water management, frac flowback, production well testing, offshore rig cooling, compression services and equipment, and selected offshore services including well plugging and abandonment, decommissioning, and diving. The Company is composed of five reporting segments organized into four divisions – Fluids, Production Testing, Compression, and Offshore The Company's operations are spread across six continents.
The Company is the general partner and owns 42% stake in CSI Compressco (NASDAQ:CCLP), a provider of compression services and equipment for natural gas and oil production.
Stock Performance Snapshot
February 15, 2018 - At Thursday's closing bell, TETRA Technologies' stock slightly declined 0.83%, ending the trading session at $3.59.
Volume traded for the day: 1.01 million shares.
Stock performance in the previous three-month period – up 2.57%; and past six-month period – up 85.05%
After yesterday's close, TETRA Technologies' market cap was at $412.46 million.
The stock is part of the Basic Materials sector, categorized under the Oil & Gas Equipment & Services industry. This sector was flat at the end of the session.
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