Forum Energy Gets Approval From Canadian Competition Bureau For Variperm Energy Services Acquisition

(RTTNews) - Forum Energy Technologies, Inc. (FET) Thursday said it received approval from the Canadian Competition Bureau to proceed with its planned acquisition of Variperm Energy Services.

In November, FET announced the deal to buy Variperm Energy Services for consideration of $150 million of cash and 2 million shares of FET's common stock, reflecting a valuation of around 3.7x Variperm's trailing twelve months EBITDA as of September 30, 2023.

The acquisition is expected to be immediately accretive to FET's margins and cash flow. At closing, FET's net leverage ratio is expected to be 1.9x with liquidity of $142 million.

Closing is expected to occur in January 2024, subject to satisfaction of customary closing conditions.