A billion-dollar merger between two Houston companies, C&J Energy Services and Nabors Industrial, has resulted in the creation of one of North America’s largest completion and production services providers.
The company created by the $2-plus billion merger is named C&J Energy Services Ltd. The company will maintain a presence in Houston but will be headquartered in Bermuda, as C&J was prior to the merger.
The new company will be led by the current C&J management team, with Josh Comstock serving as CEO and chairman.
“Today is an extraordinary and exiting day for both C&J and Nabors,” Comstock said in a news release. “Among the many strategic benefits of this combination is the transformative increase in scale, driving the rapid advancement of our goal of growing C&J from what we started as a single-crew pressure pumping company to what is now a leading diversified provider of technologically advanced oilfield services. With this combination, we have greatly expanded our capabilities and resources in a critical step to diversify our business, positioning New C&J to benefit from future opportunities and manage market challenges.”
“This is a winning combination,” said Anthony G. Petrello, Nabors chairman, CEO and president. “We would like to thank our employees for their dedication and hard work in building a leading provider of completion and production services in North America. We believe the combined company will be more capable and better-positioned to serve customers and compete on a global level than either company would have realized on their own.”
In the inversion deal, C&J acquired the production and completion businesses owned by Nabors, while Nabors, which received about $688 million in cash from C&J in the transaction, now has 53% ownership of the new company formed by the merger. Shareholders approved the deal on March 20.
C&J and Nabors were given the green light to merge by a Delaware appeals court back in December. The merger transaction was originally announced in June, 2014, but C&J Energy shareholders sought to stop the deal, resulting in a ruling from a Delaware Chancery court that C&J must seek proposals from other potential buyers for a period of 30 days before the proposed merger could go through. C&J investors had argued that the transaction was in essence a surreptitious sale of the company.
In the appeals court ruling, Delaware Chief Justice Leo Strine said that the investors could reject the deal for themselves “if they do not find its terms to be value-maximizing.”
“With a majority ownership, our shareholders retain a significant stake in a larger, premier provider of completion and production services, while benefitting from the growth of New C&J,” Petrello said.