AUSTRALIAN energy services group Valmec has completed the acquisition of Exterran (Australia) (EAPL), the Australian subsidiary of Exterran.
EAPL has since changed its name to Valmec Services and continues to provide maintenance, spare parts and support to the oil and gas sector.
The transaction included exclusive arrangements with Exterran Energy Solutions LP for the future sale and lease of its compression equipment in Australia.
A Technical Services Agreement for the start-up, commissioning and support of future compression installations was included in the transaction.
The company secured a Parts Supply Agreement to secure the supply chain of OEM parts for after-market sales and support as part of the acquisition.
The acquisition outlines that a total consideration is 100 per cent cash paid on completion at a price of less than a double multiple of EAPL’s forecasted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the 2014-2015 financial year.
Working capital adjustment was payable in January 2015.
Valmec in a statement said forecast annual revenues of approximately $21 million were supported by several long-term service agreements.
Valmec said Chevron, Santos, Arrow Energy, Origin and APA Group are a few of the companies EAPL has worked with.
Valmec managing director Steve Dropulich said “Valmec is now able to bring a full sales and service proposition to not only the impressive client base already established by EAPL, but to the Australian market as a whole.”
Release of specific details of the consideration payable is restricted by a confidentiality undertaking within the Share Purchase Agreement.