HOUSTON — C&J Energy Services and Keane Group, Inc. Has introduced that they’ve entered into a definitive agreement wherein the companies will integrate with an all-stock merger of equals. The mixed agency will be positioned as an industry-main, various oilfield offerings provider with a seasoned-forma corporation fee of about $1.8 billion, including $255 million of net debt.
Under the terms of the merger settlement, which has been unanimously authorized through the Boards of Directors of each organization and the Special Committee of the Keane Board, C&J shareholders will get hold of 1.6149 stocks of Keane commonplace stock for each proportion of C&J common stock owned. The merger settlement allows C&J to pay its shareholders a coins dividend of $1.00 consistent with shares previous to ultimate. Upon remaining, Keane and C&J shareholders will, within the aggregate, each own 50% of the fairness of the blended organization on a thoroughly diluted foundation. The percentage alternate is expected to be tax-free.
The merger of equals will create a main nicely of entirety and production services enterprise inside the U.S., with elevated scale and density throughout offerings and geographies with an outstanding presence inside the most active U.S. Basins. Both C&J and Keane share a commitment to safety and integrity, employee improvement, partnerships with blue-chip customers, technological innovation, and strong community relationships, all of to be pondered in the operations of the blended company. On a seasoned-forma foundation, the mixed organization would have about $four.Two billion in net sales and about $636 million in adjusted EBITDA for the three hundred and sixty-five days ended March 31, 2019. In addition, the two groups anticipate attaining annualized run-price price synergies of $100 million inside three hundred and sixty-five days after last. With about $173 million in coins or $106 million after the $1.00 per share coins dividend is paid to C&J shareholders, the combined enterprise may have the flexibility to spend money on increase and generation and go back capital to shareholders.
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