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Calfrac to buy Century Oilfield for $90-million

Oil and gas service sprovider Calfrac Well Services Ltd. has agreed to acquire privately held Century Oilfield Services Inc. for $90-million in stock and cash, the companies announced Monday.

Under the proposed agreement, Calfrac will pay 85 per cent of the total price with shares priced at about $14.87 each, a discount to the Friday closing price of $15.91.

The other 15 per cent, or $13.5-million, will be paid in cash.

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Once the acquisition is completed, Century shareholders will own about 12 per cent of Calfrac's outstanding shares.

In addition, Calfrac will assume debt and other liabilities of about $30-million.

"The acquisition of Century is a highly attractive transaction for each of Calfrac and Century with strategic benefits that we expect will create value for all Calfrac shareholders, including the former Century shareholders," said Calfrac president and chief executive officer Doug Ramsay.

Calfrac said it will use Century's equipment in "key unconventional natural gas resource plays" in Western Canada, as well as its operations in the U.S., Russia, Mexico, Argentina and other international markets.

Century shareholders are expected to vote on the transaction on Nov. 10.

Last month, Calfrac acquired some of competitor Pure Energy Services Ltd.'s U.S. operations for $42.8-million.

Calfrac provides well services such as pressure pumping, fracturing and other measures to boost production from oil and gas wells.

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