Archer To Buy Great White Energy Services
Bermuda based Archer Limited, through a wholly-owned subsidiary, has signed a definitive Purchase and Sale Agreement for the acquisition of all the operating companies of Great White Energy Services a company formed by Wexford Capital LP, in a transaction valued at $742 million on a cash and debt free basis.
The transaction is expected to close in the third quarter upon expiration of the Hart-Scott-Rodino waiting period or its earlier termination.
Archer’s financing for the transaction is fully guaranteed by its two largest shareholders, Seadrill Limited and Lime Rock Partners. Archer will complete a private placement for approximately 30 million shares prior to closing the Great White acquisition. The issue price will be a minimum NOK 35 per share and the issue will be fully underwritten by Seadrill and Lime Rock.
Archer’s Chairman Saad Bargach said: “We are very pleased to welcome Great White’s employees and management to Archer. Great White has a highly complementary services offering with very little geographical overlap to Archer.”
“Its completion and production services for shale oil and gas and are well recognized by its customers for first class services and completes Archer’s ambition to have a full well service offering in the USA. This combination is attractive for our shareholders and the customers of the new combined company.”
Archer’s President and CEO, Jorgen P. Rasmussen, said: “Great White has an experienced management and operational team with an extensive track record in oilfield services and is a welcome addition to our US operations.”
“The addition of Great White is in line with our desire to better serve our customers who will now benefit from our stronger position in Directional Drilling and Pressure Control, and the addition of Pressure Pumping Services.”
“For Archer, this is another important step in our continued quest to create a global leader in Drilling and Well Services that is focused on assisting our customers produce more hydrocarbons through their wells. We plan to take these services into the international areas in the coming years.”
