Published: January 27, 2022 |

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Enerflex has agreed to acquire Exterran, a U.S.-based midstream infrastructure solutions provider, in an all-stock deal valued at around $735 million.

The merger between the companies is aimed at creating an integrated global provider with an enterprise value of $1.5 billion. It will operate as Enerflex and will continue to be headquartered in Canada.

Currently, Enerflex supplies natural gas compression, oil and gas processing, electric power generation equipment, and refrigeration systems.

The Canadian firm said that the transaction will enable increased scale and efficiencies to bolster its ability to cater to customers in important natural gas, water, and energy transition markets. It will improve shareholder value via sustainable enhancements in profitability and cash flow generation, said Enerflex.

“The transaction is immediately accretive to shareholders; enhances our presence, offerings, and scale across our regions; and importantly, executes upon our years-long strategic goal of increasing recurring revenues to improve the profitability and resiliency of our platform,” said Enerflex President and CEO Marc Rossiter.

“Enerflex and Exterran each have a long history of global expertise in the delivery of modular energy solutions. Together, we are more efficient and better positioned in global capital markets,” added Rossiter.

As per the terms of the deal, Enerflex will issue 1.021 of its shares for each of the shares of Exterran. Post-merger, Enerflex’ existing shareholders will have a stake of around 72.5 percent in the combined entity, while Exterran’s shareholders will hold the remaining 27.5 percent stake.

“We are excited about the ability to create shareholder value through this transaction and improving our product and service offering,” said Exterran President and CEO Andrew Way.

“The scale and efficiencies this combination brings is the right path for Exterran and brings significant opportunities for accelerated growth in produced water treatment and energy transition products and services,” added Way.

The deal, which is subject to approvals of both the firms’ shareholders, regulatory and stock exchanges’ approvals, and other customary conditions, is anticipated to close in Q2 or Q3 of 2022.

In conjunction with the deal, Enerflex has signed a binding agreement with the Royal Bank of Canada to secure a fully committed financing comprising a three-year revolving credit facility of $600 million and a five-year bridge loan facility of $925 million.

Source: NS Energy

About Enerflex
Enerflex Ltd. is a single source supplier of natural gas compression, oil and gas processing, refrigeration systems, and electric power generation equipment — plus related engineering and mechanical service expertise. The company’s broad in-house resources provide the capability to engineer, design, manufacture, construct, commission, operate, and service hydrocarbon handling systems. Enerflex’s expertise encompasses field production facilities, compression and natural gas processing plants, gas lift compression, refrigeration systems, and electric power equipment servicing the natural gas production industry.

Headquartered in Calgary, Canada, Enerflex has approximately 2,000 employees worldwide. Enerflex, its subsidiaries, interests in associates and joint ventures operate in Canada, the United States, Argentina, Bolivia, Brazil, Colombia, Mexico, the United Kingdom, the United Arab Emirates, Oman, Bahrain, Kuwait, Australia, New Zealand, Indonesia, Malaysia, and Thailand.

To stop by Enerflex’s website, CLICK HERE

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