FMC Technologies to Buy Pure Energy for $285 Million

(Corrects description of Pure Energy in fourth paragraph.)

FMC Technologies Inc. (FTI), the largest U.S. provider of subsea equipment to the oil and natural-gas industry, agreed to buy Pure Energy Services Ltd. (PSV) for about C$282 million ($285 million) to expand its services to companies performing hydraulic fracturing.

The C$11-a-share offer represents a 40 percent premium to Pure’s closing price on Aug. 17, according to data compiled by Bloomberg. The transaction is expected to close in October, according to a statement from Houston-based FMC today.

Pure Energy, based in Calgary, provides drilling assistance to companies that use fracking to extract oil and gas from shale and other dense formations. FMC wants to expand its “shale- related businesses” and add to services provided by its surface technologies segment, the company’s Chairman and Chief Executive Officer John Gremp said in the statement.

FMC’s acquisition of a “land-focused company” is likely to cause investors and analysts to “question the rationale for the move,” Brian Uhlmer, a Houston-based analyst at Global Hunter Securities LLC, wrote today in a note to investors. “We are taking a cautious stance,” he wrote. He rates the shares neutral, the equivalent to hold, according to data compiled by Bloomberg.

The global fracking-services market climbed 63 percent to $31 billion last year compared to 12 months earlier, according to a January report from industry consultant Spears & Associates. The U.S. and Canada are the world’s largest region for the work, with $27 billion in revenue last year, according to the report.

Pure Energy rose 31 percent to C$10.25 at 8:15 a.m. in Toronto.

To contact the reporter on this story: David Wethe in Houston at

To contact the editor responsible for this story: Susan Warren at

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