Flowco Holdings has completed its acquisition of Lifting Solutions Energy Services for approximately $113 million in cash, expanding its artificial lift portfolio and international operations.
The purchase price is based on a CAD/USD exchange rate of 0.71 and remains subject to adjustments under the purchase agreement.
The sellers are also eligible for up to C$10 million of contingent consideration based on Lifting Solutions’ 2027 financial performance, payable in early 2028.
Flowco funded the acquisition using borrowings under its asset-based lending facility. The transaction was structured on a cash-free, debt-free basis.
Founded in 2014 and headquartered in Edmonton, Alberta, Lifting Solutions manufactures artificial lift technologies serving wells across Canada, the U.S., the Middle East and other international markets.
Its products include continuous rod, an alternative to conventional rod lift strings, and progressing cavity pumps.
The company also develops proprietary rod coatings and PCP technologies designed to increase operating run times and reduce customer workover and lifting costs.
The acquisition expands Flowco’s participation in later-life well applications and provides a larger operating platform in Canada and international markets.
Flowco also expects opportunities to cross-sell technologies and services across the two companies’ customer bases and geographic footprints.
Management expects the transaction to be accretive to earnings and free cash flow per share.
Troutman Pepper Locke, Blake Cassels & Graydon and Vinson & Elkins served as legal advisers to Flowco.
TPH&Co, the energy business of Perella Weinberg Partners, served as exclusive financial adviser to Lifting Solutions, while Dentons Canada served as its legal counsel.
KEY QUOTES:
“We are pleased to welcome the Lifting Solutions team to Flowco. They have built a differentiated business through a deep commitment to technology, technical expertise and high-quality service—values that align closely with our own. The acquisition broadens our artificial lift portfolio and expands our ability to provide the right solutions to customers throughout the life of the well. This transaction extends Flowco’s geographic reach and creates meaningful opportunities to bring a broader set of technologies to customers across both businesses.”
Joe Bob Edwards, President and Chief Executive Officer of Flowco
“We look forward to joining Flowco and bringing together two highly complementary businesses. Together, we can build on the strengths of both organizations and support the continued growth of the combined company.”
David Labonte, Founder and Chief Executive Officer of Lifting Solutions
