Expro Group, Frank’s International announce merger
Expro Group and Frank’s International have announced a definitive agreement under which the companies will combine in an all-stock transaction. Expro is a privately held international energy services company focused on well access and well flow optimization. Frank’s is a global oil services company that provides drilling and completions solutions and services.
Upon the closing of the transaction, Expro shareholders will own approximately 65% of the combined entity, with Frank’s shareholders owning approximately 35%.
“This transaction unites two established industry players to create a leading service provider with an extensive portfolio of capabilities across the well lifecycle,” said Mike Jardon, CEO of Expro. “Together, Expro and Frank’s will be better positioned to support our customers around the world and navigate industry cyclicality.”
The combined company will offer a portfolio of services and solutions that meet demand in well construction, completions, production optimization and decommissioning, in both onshore and offshore markets.
Both companies are also committed to continuing their development of technologies that will drive enhanced sustainability and enable the combined company to capitalize on industry trends geared toward digitalization, automation and a lower-carbon future. The combined company will remain committed to achieving a 50% reduction in carbon intensity by 2030 and net-zero CO2 emissions by 2050.
“Expro and Frank’s share complementary cultures, values and competencies – all of which support a smooth integration for our customers and employees,” said Mike Kearney, Chairman, President and CEO of Frank’s.
Upon closing of the transaction, Mr Jardon, will become CEO of the combined company and will be a member of the Board of Directors. Mr Kearney will serve as Chairman of the combined company. Quinn Fanning will serve as CFO of the combined company, and the remainder of the new leadership team is expected to include representatives of both companies.
The combined company is targeting approximately $55 million of annual run-rate cost synergies to be achieved in the first 12 months, ramping up to $70 million of annual cost savings within 36 months. The companies have also identified significant growth opportunities through complementary customer relationships and operating footprints, earlier visibility into customer requirements, increased time on rig and greater exposure to the full life of the field.
The combined company will be operationally headquartered in Houston and will maintain a significant operating presence in Lafayette, La.; Aberdeen, Scotland; and other key locations around the world. The principal executive office of the combined company will remain in the Netherlands.
