Houston-based oil services firm Ranger Energy Services announced that it has received a nonbinding offer from investment firm CSL Capital Management LP and service company Bayou Well Holdings Company LLC to acquire the outstanding shares of common stock in a cash transaction for $6.00/share.
The offer is subject to obtaining debt and equity financing, the approval of a special committee of independent directors, the informed approval by the holders of a majority of the outstanding shares of Ranger not owned by CSL, Bayou and the T. Rowe Price Investors, the approval of CSL’s investment committee, the approval of Bayou’s board of managers and the entry into a definitive merger agreement.
Bayou, founded in 2009, provides workover, plug and abandonment and fluid management services and is based out of Houston.
Ranger, founded in 2014, has customers in Texas, Colorado, New Mexico, Oklahoma, North Dakota and Wyoming, with a fleet of high-specification workover rigs and a focus on unconventional horizontal well completion and production operations.
CSL, Bayou and certain affiliates propose to own 3,189,676 shares of Class A common stock and 6.866 million shares of Class B common stock, representing 64.9% of Ranger shares. CSL and Bayou also propose that the T. Rowe Price Investors own an additional 1,363,569 shares of Class A Common Stock, representing 8.8% of Ranger shares.
The offer letter indicated may be withdrawn at any time.