Forum Energy Technologies, Inc. (NYSE: FET) announced that it has received approval from the Canadian Competition Bureau to proceed with its planned acquisition of Variperm Energy Services.
FET announced on November 2, 2023, its agreement to acquire Variperm for consideration of $150 million of cash (subject to customary purchase price adjustments) and 2 million shares of FET’s common stock, reflecting a valuation of approximately 3.7x Variperm’s trailing twelve months EBITDA as of September 30, 2023. The acquisition is expected to be immediately accretive to FET’s margins and cash flow. At closing, FET’s net leverage ratio is expected to be 1.9x with liquidity of $142 million.
Closing is expected to occur in January 2024, subject to satisfaction of customary closing conditions.
Forum Energy Technologies is a global company, serving the oil, natural gas, industrial and renewable energy industries. FET provides value added solutions that increase the safety and efficiency of energy exploration and production. We are an environmentally and socially responsible company headquartered in Houston, with manufacturing, distribution and service facilities strategically located throughout the world.
FET shares closed Wednesday to $22.67.
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