URS Corp to acquire Canadian oilfield services firm Flint Energy for $1.25 bn
21 Feb 2012
US oilfield engineering services provider URS Corp today said it is acquiring Canadian peer Flint Energy Services for C$1.25 billion ($1.25 billion) in cash, to expand its presence in the oil and gas sector.
URS will pay C$25 per share, a 67-per cent premium to Flint's C$14.90 closing price on 17 February. URS also plans to assume Flint's C$225 million debt.
Calgary-based Flint was founded in 1998 and went public in 2001 after completing a series of acquisitions.
It builds and maintains large new oil sands plants, and provides services to many of the largest companies operating in the oil, oil sands and gas producing regions of Western Canada and in the Southwest, Appalachian and Rocky Mountain regions of the US. It also builds well pads, moves drilling rigs, makes processing equipment and installs pipelines in shale formations and Canada's oil sands.
It's clients include Royal Dutch Shell, Nexen Inc. Statoil, ConocoPhillips and Cenovus Energy, amomg others.
Revenues from Western Canada's oil, oil sands and gas producing regions accounted for approximately 80 per cent of Flint's revenues, with the remaining 20 per cent coming from the US.
