KRCL advises on Petrofac’s $22M purchase of W&W Energy Services
The U.K.’s Petrofac Ltd. announced recently that it agreed to pay an initial $22 million for W&W Energy Services, marking its entry in the U.S. onshore operations and maintenance market.
Kane Russell Coleman Logan advised Petrofac, including directors Arthur Nathan, David Thrasher and James Prappas, and senior attorney Jordan Sibley. The in-house attorneys who worked on the matter were Roman Zakrevsky and Iain Murray, who serves as VP of strategy and business development for the Americas out of Houston.
W&W offers maintenance, repair and overhaul and pipeline tie-in services in West Texas’ Permian Basin. The company generated $6.6 million in EBITDA last year and had net debt of $2.8 million at closing.
Petrofac said the bolt-on acquisition – which came at 4.5 times expected EBITDA for 2019 through 2021 – is in line with its strategy to position engineering and production services for growth by diversifying into new markets and geographies.
“As production volumes, infrastructure support requirements and the activity of major operators rise in the Permian, we are confident that the combination of W&W’s footprint and strong local brand with Petrofac’s engineering and modifications capability and global track record can unlock growth,” John Pearson, COO of engineering and production services, said in a statement.