# Petrofac acquire W&W Energy Services

- Link: https://www.directorstalkinterviews.com/petrofac-acquire-ww-energy-services/412798519
- Published: 2019-11-20T07:27:58+00:00
- Author: Amilia Stone

**Petrofac** (LON:PFC) has announced it has signed a Sale and Purchase Agreement
with the shareholders of W&W Energy Services to acquire an entry-level position 
in the US onshore Operations and Maintenance market.

W&W offers Maintenance, Repair & Overhaul and Pipeline tie-in services in the Permian
Basin, the world’s largest producing basin. This bolt-on acquisition is in line 
with Petrofac’s stated strategy to position Engineering & Production Services (“
EPS”) for growth by diversifying into new markets and geographies.

Transaction consideration comprises firm and deferred cash payments, aggregating
to a total consideration of 4.5x average W&W EBITDA for the period 2019-21. Petrofac
will pay an initial cash consideration of US$22 million on completion. Deferred 
true-up and earn-out payments will be paid based on W&W’s financial performance 
over the three-year period ended 31 December 2021. 

**NOTES**

_1)   W&W’s unaudited EBITDA for the financial year ended 31 December 2018 was US
$6.6 million._

_2)   At completion, W&W’s net debt was US$2.8 million._

> **John Pearson, Petrofac Chief Operating Officer, Engineering and Production Services,
> said**: “This bolt-on provides a platform to grow EPS using a low-risk reimbursable
> services model in the US onshore services market. As production volumes, infrastructure
> support requirements and the activity of major operators rise in the Permian, 
> we are confident that the combination of W&W’s footprint and strong local brand
> with Petrofac’s Engineering and Modifications capability and global track record
> can unlock growth.”

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