Canada approves FET’s ‘acceretive’ acquisition of Variperm for $150M plus stock

Forum Energy Technologies 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 its agreement to acquire Variperm Energy Services for consideration of $150M of cash and 2M shares of FET’s common stock, reflecting a valuation of approximately 3.7x Variperm’s trailing twelve months EBITDA as of September 30 . 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 M. Closing is expected to occur in January 2024, subject to satisfaction of customary closing conditions.