Expro Agrees To Acquire Aberdeen Scotland-Based Coretrax For $210M, Expanding Well Construction & Intervention Solutions
Portfolio Pulse from Benzinga Newsdesk
Expro has agreed to acquire Coretrax, an Aberdeen Scotland-based company, for $210M to expand its Well Construction & Intervention Solutions. The deal includes at least $75M in cash and up to 6.75M newly issued Expro common shares, with the option for Expro to increase the cash component. The acquisition, expected to close in Q2 2024, is valued at approximately 4.7x Coretrax's estimated 2024 Adjusted EBITDA. Expro aims for up to $10M in annual cost synergies within 18 months and plans to leverage Coretrax's technology across various regions.
February 13, 2024 | 6:51 am
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Expro's acquisition of Coretrax for $210M aims to expand its Well Construction & Intervention Solutions, with the deal expected to close in Q2 2024. The acquisition is valued at 4.7x Coretrax's estimated 2024 Adjusted EBITDA, with Expro targeting $10M in annual cost synergies within 18 months.
The acquisition of Coretrax is likely to have a positive short-term impact on Expro's stock (XPRO) due to the strategic expansion into new regions and the potential for significant cost synergies. The deal's valuation at 4.7x Coretrax's estimated 2024 Adjusted EBITDA indicates a strategic investment in growth, which could be viewed favorably by investors. The anticipation of closing the deal in Q2 2024 and achieving up to $10M in annual cost synergies within the first 18 months post-acquisition suggests a strong forward-looking strategy that could boost investor confidence.
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