Canadian Energy Services LP, Calgary, (Toronto: CEU) has acquired privately held, Norman, Okla.-based Champion Drilling Fluids Inc., for $16.7 million.
Canadian Energy paid $10.4 million in cash for Champion, which provides drilling fluid solutions to oil, natural gas, and unconventional natural gas developers in Kansas, Texas and Oklahoma. The remaining $6.3 million is payable through the issuance of subordinated convertible debentures.
Canadian Energy says the acquisition creates a strong platform to service core U.S. unconventional resource plays in the Midcontinent, with future opportunities in the Marcellus and Haynesville shales.
RBC Capital Markets was financial advisor to Canadian Energy.
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