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Precision Drilling to buy CWC Energy Services in deal valued at $141M

CALGARY — Precision Drilling Corp. has signed an agreement to acquire CWC Energy Services Corp. in a deal valued at about $141 million including shares, cash and assumed debt.
Canadian Press
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Precision Drilling Corp. has signed an agreement to acquire CWC Energy Services Corp. in a deal valued at about $141 million including shares, cash and assumed debt. Trainees Dan Brook and Bradley Williams are directed by instructor Clint Dyck while training to lay down drill pipe on a rig floor, at Precision Drilling in Nisku, Alta., on January 20, 2016. THE CANADIAN PRESS/Jason Franson

CALGARY — Precision Drilling Corp. has signed an agreement to acquire CWC Energy Services Corp. in a deal valued at about $141 million including shares, cash and assumed debt.

Precision CEO Kevin Neveu says the deal expands the company's service business in both Canada and the U.S. with high-quality rigs and field personnel.

The acquisition will add 62 marketed service rigs and seven marketed drilling rigs in Canada as well as 11 marketed drilling rigs in the U.S., including seven AC triple rigs.

Under the deal, which requires CWC shareholder and other approvals, Precision will pay a total of 947,909 Precision shares and about $14 million in cash while assuming CWC’s outstanding debt.

The implied blended offer price works out to 19.7 cents per CWC share based on Precision's closing price on Sept. 1.

CWC shares closed at 20.5 cents on the TSX Venture Exchange on Wednesday.

This report by The Canadian Press was first published Sept. 7, 2023.

Companies in this story: (TSX:PD, TSXV:CWC)

The Canadian Press