Profire Energy Inc., a technology company which creates, installs and services burner and chemical management solutions in the oil and gas industry, said on Aug. 6 that the company entered into a definitive agreement to acquire all the outstanding membership interests of Midflow Services LLC from its members.
The agreement contains customary representations, warranties, covenants and indemnification provisions. The transaction closed concurrently with the signing of the agreement on August 5, 2019. As a result of the transaction, Midflow became Profire Energy’s wholly owned subsidiary.
Midflow Services was a privately-held company based in Millersburg, Ohio, that designs, builds, and services burner control, production process, and safety shut-down systems for the oil and gas industry. Specializing in upstream and midstream oil and gas production equipment, Midflow has established its place in the oil field service market by providing top-quality solutions, products and services.
“We are extremely pleased to announce the acquisition of Midflow Services,” Brenton W. Hatch, president and CEO of Profire Energy, said. “Much like Profire, Midflow has established an unmatched reputation of expertise and reliability. Acquiring Midflow and its current team––which has over 65 years of combined oil and gas experience––serves to further enhance Profire’s position as the industry leader in service and technology.”
The company paid a total purchase price of $3.4 million, including $1.9 million paid in cash to the sellers at closing, $500,000 placed in a one-year escrow to secure the Sellers’ post-closing obligations to the company, and the issuance of $1 million in restricted shares of the company’s common stock to the sellers. The purchase price is also subject to adjustment based on Midflow’s working capital at closing. The acquisition is expected to add between $2.5 million and $3.5 million to the company’s annual revenues.
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