Patterson-UTI to acquire Multi-Shot in cash and stock deal

Patterson-UTI (PTEN) announced that it has entered into an agreement to acquire Multi-Shot, LLC d/b/a MS Energy Services, on a debt-free basis for total consideration of approximately 8.8M shares of Patterson-UTI common stock and $75M of cash.

Based in Conroe, Texas, MS Energy is a leading directional drilling services company in the United States. The pending transaction, which is expected to close early in the fourth quarter, is subject to customary closing conditions and receipt of required third party consents, and is subject to expiration or termination of the waiting period under the Hart-Scott-Rodino Act.

Under the terms of the transaction, Patterson-UTI will acquire all of the issued and outstanding limited liability company interests of MS Energy for consideration of approximately 8.8M shares of Patterson-UTI common stock and $75M of cash. In connection with this transaction, Patterson-UTI expects to acquire approximately $30M of non-cash working capital.

The transaction values MS Energy at approximately $215M, based on the most recent closing price of Patterson-UTI common stock of $15.94. Patterson-UTI will fund the $75M cash consideration using cash on hand and the Company’s revolving line of credit.

The cash consideration paid to the sellers will be used to cover transaction expenses and repay the outstanding debt at MS Energy, and as such, Patterson-UTI will not assume any debt of MS Energy.

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