Houston-based well completion services company Keane Group plans to acquire the majority of Calgary-based Trican Well Service Ltd.’s U.S. assets in a $247 million deal announced Tuesday.
Trican will receive $200 million in cash plus a minority interest stake in Keane Group. Keane said the acquisition will allow it to “triple its frack capacity, acquire access to proprietary technology, add applied engineering capabilities and further expand the company’s service offerings and geographic reach” in the United States.
Trican had said earlier this month that it was negotiating a transfer of its U.S. assets (see Shale Daily, Jan. 14).
Keane Group CEO James Stewart said the deal will “strengthen Keane’s position as a leader in the completion services business across all key U.S. basins. With our expanded capabilities, Keane Group will have significantly greater scale that will enable us to provide all customers cost-effective completion services that will maximize the return on their assets in the current low commodity price environment. With a strong balance sheet and scalable platform positioned for continued growth, Keane looks forward to playing an active role in further industry consolidation.”
Keane will acquire equipment, key employees and engineering capabilities from Trican in the deal, increasing its frack capacity from 300,000 hp to 950,000 hp and adding new capabilities and services, including cementing, coiled-tubing, nitrogen pumping and acidizing, the company said.
Through the transaction, Keane said it plans to expand to new basins in Texas and the Midcontinent while “deepening” its presence in the Permian Basin and the Bakken, Marcellus and Utica shales.
Stewart said the companies will work to “ensure uninterrupted service to Trican U.S.’s and Keane Group’s existing customers.”
The transaction is expected to close in mid-March.