As part of the transaction, Exterran will become a part of Enerflex, which will remain headquartered in Canada. The combination will create a leading global energy infrastructure with operations in Canada, the US, and Europe. Under the terms of the agreement, which was expected to close in Q3 2019, Exterran shareholders will receive 1.021 units of Enerflex for each share of Exterran. The transaction values Exterran at approximately US$735 million, or 18 percent more than its enterprise value as of January 2021.
The transaction value per share of the company is based on an EV/2022E adjusted EBITDA of 3.5x and a Price/2022E Cash Flow of 1.9x, excluding synergies. Upon closing, the combined company will have a total of 72.5% of its common shares outstanding. The combination of these two companies will immediately enhance Enerflex’s presence and scale across various regions. It is also consistent with the company’s strategy to increase recurring revenues. It will also create a more robust and competitive product and service offering, which will allow them to accelerate growth in the energy transition and produced water treatment markets.