Trican acquires fracking firm Canyon for $637M to form $1.4B company
Trican Well Services has agreed to acquire Canyon Services Group, creating one of the largest public oilfield service firms in Canada; the combined company will offer well management and hydraulic fracturing services
CALGARY, Alta.—Trican Well Service Ltd., a Calgary-based oilfield service provider, announced Mar. 22 that it has agreed to acquire Canyon Services Group Inc., a hydraulic fracturing firm, for $673 million.
The combined company will be one of the largest publicly traded oilfield service businesses in the Canada, worth $1.4 billion.
Trican and Canyon will collectively provide 675,000 high horsepower (HHP) of available hydraulic fracturing capacity, as well as cementing, coiled tubing, nitrogen fracturing, acidizing, fluid management and industrial services.
Both companies’ boards of directors have unanimously approved the transaction and are seeking shareholder approval. RBC Capital Markets is handling the transaction.
The deal is expected to close in the second half of 2017, subject to TSX and regulatory approvals.
“This combination with Canyon will create a Western Canadian-based leading energy services firm that has the asset base, efficient cost structure and financial capacity to create value for all of our combined stakeholders,” said Dale Dusterhoft, Trican’s president and CEO.
“Trican and Canyon have similar businesses and shared values, and we are committed to driving a successful integration. We envision a combined company that will set the standard for service quality, field execution and operating efficiencies,” said Brad Fedora, President and CEO of Canyon.