July 16–Houston fracking firm U.S. Well Services will go public and expand through a new business combination with additional private equity investments.
U.S. Well Services is being acquired by a publicly traded blank-check firm called Matlin & Partners Acquisition Corp. that’s headed by Wall Street investor David Matlin, who has a reputation of targeting distressed companies.
New York private equity firm Crestview Partners also agreed also to lead $135 million in new investments into the company in exchange for an ownership stake and two board seats.
Six-year-old U.S. Well Services is primarily a hydraulic fracturing, or fracking, firm focused on completing oil and gas wells. The company stands out for its emphasis on electric powered trucks for its fracking fleets instead of conventional diesel power. The company touts its “Clean Fleet” technology that uses natural gas collected from wells to power its electric turbines.
“This combination with USWS represents a significant opportunity in a provider of electric-powered hydraulic fracturing services with disruptive technology and significant growth potential,” Matlin said.
The deal is expected to close by the end of the year and U.S. Well Services plans to use the proceeds and new investments to expand its business from 11 to 17 fracking fleets, making it one of the larger players in the industry.
Chief Executive Joel Broussard will continue to serve as CEO, while Kyle O’Neill is leaving his managing director position at the asset management firm TCW Group to become the new chief financial officer of U.S. Well Services.
The details of the deal aren’t being disclosed, but the company is being described as having a $588 million enterprise value, including debt.
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