Select Water Solutions to Acquire Pilot Water Solutions
WTTR has more than doubled off its 52-week low of $9.285.
Summary
Select Water Solutions has agreed to acquire Pilot Water Solutions, a private water midstream company with a core position in the Delaware Basin, for $700 million in cash and stock. The consideration consists of $600 million in cash and $100 million in Class A common stock, with an additional $15 million in potential earnout cash tied to operational milestones. The purchase agreement also includes a true-up payment if the stock price falls below the closing share price six months after closing, and sellers may receive a $35 million termination fee in certain breach scenarios. The transaction is expected to close in the fourth quarter. Pilot Water is projected to generate $100 million to $110 million in adjusted EBITDA for full year 2026, growing to $120 million to $130 million in 2027.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — The purchase agreement includes a $15M contingent payment tied to operational milestones and a true-up payment if the stock price falls below the closing share price six months after closing. Sellers may receive a $35M termination fee in certain breach scenarios.
At the time of this announcement, WTTR was trading at $19.61 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2.5B. The 52-week trading range was $9.29 to $22.55. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.