FMI Advises Magnum Oil Tools International in Sale to Nine Energy Service
HOUSTON - FMI Capital Advisors Inc., a subsidiary of FMI Corporation, is pleased to announce its advisory role in the acquisition of Magnum Oil Tools International, LTD by Nine Energy Service, Inc. FMI Capital Advisors served as the exclusive financial advisor to Magnum for this transaction.
The transaction positions Nine as one of the premier providers of completion-focused technology combined with excellence in both service execution and conveyance capability. The combined Nine/Magnum portfolio helps operators reduce risk and cycle times as completions continue to become more complex with longer laterals, more stages and mega-well pads.
“We believe this deal will continue to differentiate Nine within the industry, and Magnum’s capabilities allow us to create a more balanced profile of completion tools,” said Ann G. Fox, Nine’s President and Chief Executive Officer. “Ultimately, this acquisition delivers an oil field service platform that provides customers with even better service and aids Nine’s continued growth.”
“Magnum is excited to join Nine. This is a perfect next step, given the standards and culture that have made Nine a leader in the industry match so closely to our own,” said Lynn Frazier, Chief Executive Office and founder of Magnum. “We look forward to working together to provide customers with the best quality products and services possible while furthering the development of Nine as an industry pioneer.”
The announced upfront transaction consideration included approximately $334 million of cash and 5 million shares of Nine common stock (valued at $159 million based on a 30-day value weighted average price as of 10/12/18). The terms of the purchase also include the potential for additional contingent payments based on certain future performance metrics.
The Magnum sellside advisory transaction is the second recently closed M&A transaction for FMI’s Energy Service & Equipment team. During the summer, FMI’s Energy Service & Equipment team served as the exclusive financial advisor to CSI Inspection on its sale to an unnamed buyer.
About Magnum Oil Tools:
Magnum is a market-leading downhole technology provider serving the global oil & gas industry. Magnum has a broad offering of proprietary downhole completions products including dissolvable and composite frac plugs and other consumables. Magnum is headquartered in Corpus Christi, TX with operating locations in the Permian, SCOOP/STACK, Bakken, Niobrara, Haynesville, Marcellus, Utica and Canada. For more information on the company, please visit Magnum’s website at magnumoiltools.com.
About FMI Capital Advisors:
FMI Capital Advisors, a subsidiary of FMI Corporation, is a leading investment banking firm exclusively serving the Built Environment, including the Energy Service & Equipment market. With more than 700 completed transactions, our unique industry focus enables us to provide our clients with valuable insight and advice. Clients gain access to our unparalleled network of industry contacts and relationships combined with deep market knowledge and technical expertise accumulated through decades of experience.
FMI Capital Advisors Contacts:
Barry Donovan, Managing Director
713-936-4982
Michael Chevalier-White, Managing Director
713-936-4966