HOUSTON, June 6, 2012 /PRNewswire/ -- C&J Energy Services, Inc. (NYSE:CJES) ("C&J" or the "Company") today announced that it has entered into a definitive purchase agreement to acquire all of the outstanding equity interests of Casedhole Holdings, Inc. and its operating subsidiaries, including Casedhole Solutions, Inc. ("Casedhole"), for approximately $272.5 million in cash, subject to customary closing adjustments.
Headquartered in Houston, Texas, Casedhole is a leading multi-regional, independent provider of cased-hole wireline and other complementary services for energy producers in the United States. With 12 district locations, Casedhole provides premium services in the most complex and demanding operating environments focusing on oily and liquids-rich basins. We expect the addition of Casedhole to be immediately accretive to C&J's 2012 earnings and cash flow per share. The transaction is expected to close prior to June 8, 2012 upon satisfaction of customary closing conditions. No shareholder vote is required for the approval of the transaction, and the acquisition is not subject to a financing contingency. The transaction received early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Josh Comstock, President and Chief Executive Officer, stated, "This transaction advances C&J's goal to become a large scale, geographically diversified provider of the most technologically advanced completion services. With this acquisition, we are adding best-in-class wireline services to our premium hydraulic fracturing, coiled tubing and pressure pumping offerings, making us one of the few U.S. companies that simultaneously offer each of these completion services to our growing base of customers. We are especially pleased to be able to acquire and team with a rapidly growing company whose growth strategy and operating model closely mirrors C&J's. Both companies provide the most efficient and effective solutions for customers with the most complex and demanding well completion requirements. C&J offers Casedhole the opportunity to grow more rapidly with greater access to capital and C&J intends to leverage Casedhole's expanding market share in geographic regions in which we are not currently operating."The various benefits that Casedhole will bring to C&J include:
- An expanded geographic presence in 10 of the most active U.S. areas, including the Williston and Uinta Basins and the Marcellus, Utica, Avalon and Bone Springs shale plays where C&J currently does not have a presence;
- A loyal and expanding customer base of leading E&P operators which is largely non-overlapping and complementary to C&J's existing customer base;
- A seasoned management team with extensive large-cap oilfield services management experience, as well as a full roster of skilled engineers and field-level personnel that bring extensive technical expertise and domestic and international basin knowledge;
- Premium, custom-built assets, including 58 wireline units with an average age of less than three years, compared to an industry average of 10 to 15 years, and 11 pumpdown units that were added during the past five months;
- Industry leading EBITDA margins and significant revenue growth that since June 2009 has outpaced the U.S. land rig count growth by more than 8 times. Casedhole's trailing 12 month revenue as of March 31, 2012 was $156.8 million, with substantial equipment additions occurring throughout the 12 month period;
- A superior track record of efficient wireline service, with an historical perforation success rate well in excess of the wireline industry average; and
- Horizontal pumpdown and high pressure, high temperature completion applications that will be complementary to C&J's existing suite of services.
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