Expro International Group PLC announces the acquisition of PWS, a leading supplier of well testing and other flow management products and services to the global oil and gas industry for $674.5 million (£366.0 million), on a cash-free debt-free basis (the "Acquisition").

PWS’s operations include a global well testing business and a regional fluids analysis business, as well as choke equipment supply and related services to the land well market in the USA.

PWS is a portfolio company of First Reserve Corporation, the oldest and largest private equity firm focused exclusively on investing in the energy industry.

The consideration payable by the Company in relation to the Acquisition comprises the allotment and issue to the owners of PWS of 9,155,961Consideration Shares (representing US$115.0 million (£62.4 million)), with the balance to be paid in cash.

The Company proposes to raise approximately £127.6 million (net of expenses) by way of a rights issue (the "Rights Issue") to Qualifying Shareholders, the proceeds of which will be used towards payment of the cash balance of the consideration for the Acquisition as described above. The remainder of the cash balance of the consideration is to be financed through new Group bank facilities.

The Board believes that the Acquisition represents a significant opportunity for the Group to accelerate its growth and enhance its market position consistent with its continuing strategy. The Acquisition will significantly increase the Group’s geographic spread and critical mass by bringing into the Group complementary businesses with a largely different geographic spread, thereby creating a leading global provider of exploration and production well testing and clean-up services. The Acquisition will also expand the Group’s portfolio of products and services into choke equipment supply and services.

The Acquisition is expected to be earnings enhancing for the Company during the first full financial year after the issue of the New Shares and Consideration Shares. 1

Graeme Coutts, Chief Executive, commented:

"The Company has had an excellent year both in terms of its financial performance as well as continuing to deliver on our strategic objectives. I am therefore delighted to announce the proposed Acquisition of PWS, a global business which is highly complementary to Expro’s and which will significantly enhance our market position and global offering.

Our strategy has been to develop market-leading businesses based on technology innovation, and this proposed Acquisition will further that strategy. The Company’s existing well testing activities and those of PWS are geographically complementary, and PWS’s strong presence in several key markets and key customer relationships will provide enhanced growth opportunities for the Company’s other services.

The Acquisition is a significant opportunity for the Company, at a time when the outlook for the upstream service sector is particularly positive."