Flowco Buys Lifting Solutions for $113M, Adding Continuous Rod and PCP Tech
FLOC sits 30% above its 52-week low of $14.03.
Summary
Flowco closed its acquisition of Lifting Solutions Energy Services for approximately US$113 million in cash, funded through its ABL facility. The deal adds continuous rod and progressing cavity pump technologies, expanding Flowco's artificial lift portfolio and geographic reach into Canada and international markets. Management expects the transaction to be accretive to earnings and free cash flow per share, with up to C$10 million in contingent consideration tied to 2027 performance. This follows a period of strong Q2 results and recent insider selling by a former executive. A conference call is scheduled for today at 7:30 a.m. ET to discuss the acquisition.
Updates
· SEC 8-K — The purchase price was C$159.0 million, with up to C$10.0 million earnout tied to 2027 EBITDA between C$32.0 million and C$36.8 million.
At the time of this announcement, FLOC was trading at $18.29 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $14.03 to $28.26. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: BusinessWire.