Nine Energy Services to acquire Magnum Oil Tools for $493Staff Writer | October 15, 2018
Nine Energy Service announced that it has entered into a definitive agreement to acquire Magnum Oil Tools International.
America Magnum does not have any debt
Total upfront transaction consideration of $493 million consists of a combination of approximately $334 million of cash, as well as 5 million shares of Nine common stock (valued at $159 million, based on a 30-day value weighted average price as of 10/12/18).
The terms of the purchase agreement also include the potential for additional future contingent payments. Magnum does not have any debt. The Company intends to fund the cash purchase price with the net proceeds of a notes offering announced concurrently with the announcement of this acquisition, borrowings under a new credit facility and cash on hand.
The transaction is subject to antitrust approval and other customary closing conditions. The purchase agreement contains customary representations and warranties, covenants, indemnification and termination provisions. ■