ChampionX Acquires RMSpumptools, Strengthening Global Presence In Artificial Lift Solutions
Portfolio Pulse from Nabaparna Bhattacharya
ChampionX Corporation (NASDAQ:CHX) announced its plan to acquire RMSpumptools Limited for approximately $110 million, aiming to strengthen its global presence in artificial lift solutions. The acquisition, expected to close by Q3 2024, is anticipated to generate around $65 million in revenues and $18 million in adjusted EBITDA for 2024. This move aligns with ChampionX's strategy for technology acquisitions and is funded by cash on hand, without affecting its 2024 capital return framework. CHX stock has seen over a 35% increase in the past year.
March 22, 2024 | 5:17 pm
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POSITIVE IMPACT
ChampionX's acquisition of RMSpumptools for approximately $110 million is expected to strengthen its global presence in artificial lift solutions, with the deal closing by Q3 2024.
The acquisition is likely to enhance ChampionX's product offerings and market reach, potentially leading to increased revenues and profitability as indicated by the expected $65 million in 2024 revenues. The positive market reaction is reflected in the stock's recent performance, with a 35% gain in the past year.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to ChampionX, which has seen over a 35% increase in the past year, through the VanEck Oil Services ETF (OIH).
OIH, by including ChampionX in its holdings, may see a positive impact from ChampionX's strategic acquisition and its strong performance over the past year, potentially enhancing the ETF's performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to ChampionX, which has seen over a 35% increase in the past year, through the Invesco Oil & Gas Services ETF (PXJ).
As PXJ includes ChampionX in its holdings, the positive developments and performance of ChampionX, especially with the recent acquisition, could contribute to the ETF's attractiveness and potential performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50