Flowco Holdings has completed the acquisition of Lifting Solutions Energy Services for approximately $113 million, which helps to expand the company's portfolio of artificial lift technologies and strengthen its presence in the Canadian and international oil and gas markets.
Details of the Lifting Solutions Acquisition
This acquisition includes technologies for continuous rod systems and advanced progressive cavity pumps (PCP), which assist in optimizing production in aging wells. Lifting Solutions, based in Edmonton, Alberta, produces artificial lift technologies for operators in Canada, the United States, the Middle East, and other international markets.
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The company's product portfolio includes continuous rod systems, an alternative to conventional rods, and proprietary rod coatings and PCP technologies that help increase equipment uptime and reduce maintenance costs and enhance artificial lift.
Impact on the Market and New Opportunities
Flowco announced that this acquisition expands its geographical footprint and creates new opportunities for introducing complementary technologies among existing customers of both companies. Joe Bob Edwards, President and CEO of Flowco, stated, "This acquisition expands our portfolio of artificial lift technologies and enhances our ability to provide suitable solutions to customers throughout the well's life cycle."
Lifting Solutions, established in 2014, adds operations based in Canada and an international customer base to Flowco. The company expects the acquisition to contribute to further growth in Canada, the Middle East, and other markets.
Flowco paid $113 million in cash for this acquisition, subject to customary purchase price adjustments. Additionally, sellers are eligible to receive contingent payments of up to $10 million based on the financial performance of Lifting Solutions in 2027, which will be paid in early 2028.
This transaction was financed through borrowing under Flowco's asset-based lending facilities. Flowco expects this acquisition to add to earnings and free cash flow per share.
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