KLX Energy Buys Permian Coil, Wireline Business For $148 Million
Transaction Details:
KLX Energy Services agreed to acquire Motley Services, a large diameter coiled tubing service provider serving customers primarily in the southwestern U.S., for $148M.
Amin J. Khoury, Chairman, Chief Executive Officer and President of KLX stated, “The acquisition of Motley represents an entry into the coiled tubing market for KLXE, and significantly strengthens the Company’s current portfolio of well completion services. Motley’s business will enhance our integrated platform by adding large diameter coiled tubing services initially into the Company’s Southwest region, and then rolling it out to the rest of our geographic regions.”
Mr. Khoury concluded, “The acquisition price of $148 million represents a multiple of approximately 3.2x the mid-point of Motley’s third quarter 2018 EBITDA guidance, on an annualized basis. The acquisition is expected to close in late October or early November 2018 and to be strongly accretive to KLX Energy Services earnings in 2018 and 2019.”
About Motley
Motley, a premier provider of well completion services, is primarily focused on providing high-quality large diameter coiled tubing services specializing in complex, longer lateral horizontal wells. Motley also provides wireline and thru-tubing services, which are complementary to KLX Energy Services’ existing service offerings. Motley’s third quarter 2018 revenues and EBITDA guidance, on an annualized basis based on the mid-point of the guidance, are approximately $136 million and $46 million, respectively.
Permian Deal Activity In Last 12 Months
Announced Date | Buyer | Seller | Deal Value($mm) | Location | Category |
---|---|---|---|---|---|
Aug-05-2021 | - | - | Click here | Service | |
May-17-2021 | - | - | Click here | Service | |
Aug-03-2020 | - | - | Click here | Service | |
Nov-04-2019 | - | - | Click here | Texas | Service |
Oct-28-2019 | - | - | Click here | Texas | Service |