Vancouver's Finning International Inc. (TSX:FTT) plans to acquire Red Deer, Alberta-based Collicutt Energy Services Ltd. (TSX:COH) in a deal worth $145 million.
Collicutt is a Canadian oilfield service company that focuses on servicing and fabricating natural gas compression equipment and electric power generation packaging in Alberta and B.C.
The acquisition will add 315,000 square feet of operational space in Alberta and B.C. and expand Finning's workforce by more than 450 employees.
It will also give Finning a foothold in Red Deer and allow Finning operations in Alberta to expand the company's business in other areas of Western Canada.
As part of the deal, Finning will offer Collicutt shareholders $9.75 per Collicutt share either as cash or a combination of cash and Finning common shares.
The deal is subject to customary closing conditions, regulatory approvals and acceptance by 90% of Collicutt's outstanding shares.
Finning's share price range during the past week: between $25.13 and $26; 52-week high: $33.91; 52-week low: 421.92