Oilfield services firm Archer has entered into an agreement to acquire Premium Oilfield Services, a U.S.-based well service provider within fishing and P&A related services.
Archer and Premium’s complimentary client base represents more than 80% of the estimated $15 billion spend in deepwater P&A and decommissioning in the Gulf of America up to 2040, according to the company.
The acquisition will enable meaningful direct cost and capex synergies. Most notably, Archer will acquire a broad portfolio of well-maintained fishing equipment with an estimated replacement value of $35-40 million, which will give material third party rental savings.
Total consideration for the acquisition is $20 million, which will be financed through a contemplated private placement (see separate announcement).
The acquisition is expected to close shortly after completion of the contemplated private placement. Completion of the transaction is subject to customary closing conditions, including a financing condition.