Enerflex Boosts Global Compression Business
Buying Axip’s overseas assets for US$430 million
Enerflex Ltd. of Calgary is buying Axip Energy Services’ international contract compression and processing business for US$430 million in cash.
The acquisition does not include Axip’s U.S. assets. Axip is the former Valerus Compression Services business, which began operating as a stand-alone company on Jan. 3, following the sale of Valerus Field Solutions to Kentz Corp. Ltd.
Headquartered in Houston, Axip’s international business has 173 employees with operations in Mexico, South America, Southeast Asia and the Middle East. Key assets to be acquired include a 448 unit compression fleet totaling 285,000 hp (212 MW) with utilization above 90% and an average age of 5.5 years. Other assets include gas treatment facilities in Mexico, Argentina and Peru.
Axip’s international senior management team will remain with the acquired business. For the year ended Dec. 31, 2013, the business had revenues of US$128 million and earnings before interest, taxes, depreciation and amortization of US$57 million.
“This acquisition provides Enerflex with an established platform to expand into growing geographies in a business with attractive margins and recurring revenue. It accelerates our ability to deliver full cycle contract services and cross-sell fabrication product offerings into high-growth international markets,” said Enerflex President and CEO J. Blair Goertzen.