ProFrac adds six frac fleets by completing REV Energy and Producers Service acquisitions
(WO) — On Jan 4., ProFrac Holding Corp. closed on its previously-announced acquisition of REV Energy Holdings, LLC, a privately owned pressure pumping service provider with operations in the Rockies and Eagle Ford.
ProFrac acquired REV for $140 million, consisting of $70 million in ProFrac Class B common shares, approximately $39 million in seller-provided financing, and the balance with cash on hand and debt assumption of approximately $5.5 million.
The purchase agreement also provides for up to $20 million of earn-out payments in the event REV achieves EBITDA of approximately $90 million in 2023. REV operates three premium frac fleets totaling 204,500 hydraulic horsepower that offer significant opportunity for upgrades through the additions of DGB engines and engine idle reduction systems.
ProFrac also closed the acquisition of Producers Services Holdings LLC, an employee-owned pressure pumping services provider serving Appalachia and the Mid-Continent. Under the terms of the agreement, ProFrac has acquired Producers for approximately $35 million of total transaction value, of which approximately half was paid in ProFrac Class A common shares.
Through this transaction, ProFrac will add three fleets, of which two are currently active, totaling 200,000 HHP as well as a 50,000 ft.2 manufacturing facility located near Zanesville, OH, through which ProFrac plans to expand its manufacturing footprint to support Northeast operations. ProFrac expects the transaction to be accretive to earnings and cash flow in 2023.
With these transactions, ProFrac has expanded its geographic footprint to include the Rockies and Bakken, and increased its pressure pumping and manufacturing presence in the Northeast. By the end of January, ProFrac expects to have 45 active fleets, with an additional four electric fleets under construction that the Company expects to deploy in the first half of 2023.
