U.S. Well Services jumps on buyout deal from ProFrac Holding
22/06/2022 11:48
** Shares of hydraulic fracking services provider U.S. Well
Services Inc USWS.O up ~29% at 93 cents before the bell
** ProFrac Holding Corp PFHC.O to acquire USWS in a
stock-for-stock transaction with an exchange ratio of 0.0561
shares of ProFrac Class A common stock for each share of USWS
Class A common stock urn:newsml:reuters.com:*:nPn9FmPpJa
** The deal is expected to be completed in Q4 and to be
accretive to 2023 adjusted EBITDA
** Deal is also expected to result in about $35 mln of
annual cost savings
** It will eliminate ProFrac's expected license fees to USWS
of about $22.5 mln per year over the next four years
** Up to Tuesday's close, USWS had fallen ~37% this year
whereas ProFrac has risen ~19% from its May 2022 IPO price of
$18
(Reporting by Ananya Mariam Rajesh in Bengaluru)
((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam))