- National Energy Services Reunited ( NASDAQ: NESR ) is acquiring a minority stake in W. D. Von Gonten Engineering LLC, a premier Reservoir Characterization and Geological & Geophysical laboratory and consulting business formed from the merger of W. D. Von Gonten Laboratories LLC and W. D. Von Gonten & Co. Petroleum Engineering Consulting.
- This acquisition, valued at approximately 4 times estimated 2022 EBITDA, was funded mainly through issuing NESR shares valued at $10 per share, and a minority portion of cash.
- The company have an option to acquire additional stake and become the majority owner of WDVG in subsequent years.
- NESR Chairman and CEO Sherif Foda commented, "This strategic addition of a truly differentiated oilfield labs & consulting business is crucial to the overall positioning of our portfolio, and we look forward to collaborating further with Bill and his team. Furthermore, the addition of WDVG's state-of-the-art laboratory equipment in NORI in Techno Valley will enhance our collaboration with academia and enable exchange of scientists and researchers between the USA and the MENA region where we are developing joint programs to benefit from what has been achieved across the globe in the last decade. In addition, the demand for natural gas and unconventional resources is anticipated to explode in the coming years in the region, and having such expertise and cutting edge laboratory capabilities in the heart of this activity will ensure giving access to our customers for the latest technologies, testing facilities and intellectual power. Overall, we are very excited about the future of the region and this transaction will bring both tangible and intangible benefits to our customers in this multi years upcycle."
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NESR agrees to acquire minority stake in W. D. Von Gonten Engineering LLC in a stock deal