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Market: TSX
Sector: Oil & Gas Equipment & Services
EPIC: FES
Latest Price: 0.00  (0,00%)
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Flint Energy Services
www.flint-energy.com

Flint Energy Services is North America's leading fully integrated midstream construction and production service provider to the energy and resource industries. Flint’s services extend from the wellhead to the processing plant and from oil sands to natural gas with a full range of integrated midstream production services to North America's energy and resource industries.

Full Flint Energy Services profile here
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URS to buy Canada's Flint Energy for $1.25 bln

21st Feb 2012, 9:04 am by Joyanta Acharjee
URS to buy Canada's Flint Energy for $1.25 bln

US engineering company URS Corp (NYSE:URS) said Tuesday it will buy Canadian oilfield services firm Flint Energy Services (TSE:FES) for $1.25 billion in cash, to expand its presence in the oil and gas sector.

Under the deal unanimously approved by the two companies’ boards, Flint shareholders will get $25 a share — a 68 percent premium over the stock's Friday close. URS wil also assume $225 million in Flint debt as part of the transaction, the companies said in a joint statement.

San Francisco-based URS designs bridges and roads, and the deal expands the company's presence in designing equipment and systems needed for extracting natural gas and oil from unconventional sources such as sand. URS' revenues from the oil and gas sector are expected to increase to about 22% of total revenues following the transaction, the company said.

URS Chief Executive Martin Koffel said: "Through this combination, URS will be well positioned in segments of the oil and gas industry that we expect to have attractive margins and growth rates."

The company expects the deal to add 20 to 30 cents per share to its full-year earnings.

URS expects 2012 revenue of $9.9 to $10.1 billion and a profit of $3.95 to $4.05 per share on a standalone basis.

Calgary, Alberta-based Flint, which has about 10,000 employees, gets about 80 percent of its revenue from Canada, and the rest from the US.

In November last year, Flint said it expects its drilling activity in Canada and the US to rise 10 percent and 12 percent, respectively, in 2012.

Flint Energy's chairman, Stuart O’Connor, added: "We are very pleased with the arrangement with URS. It delivers a significant cash premium to our stockholders while also allowing Flint to accelerate the growth of its business by offering a more complete suite of services to clients."

URS, which has about 47,000 employees, expects pre-tax cost synergies of $10 to $15 million in 2012 from the deal.

URS expects to fund the deal using an existing credit facility and a financing commitment for a new bridge facility.

After closing, Flint will become a new division of URS, led by Flint's chief executive William Lingard.

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