Four oilfield services companies Northern States Completions, Tripoint LLC, CDK Perforating and Integrated Production Services Canada have merged to form Nine Energy Service.
The news comes after a slew of M&A transactions surrounding oil services companies.
Nine will also provide energy services, including completion and wireline services. The four companies bring experience from different areas of oilfield services, which should allow Nine to continue to operate in those areas. Nine announced the deal on June 10.
Northern States and Tripoint had operations in Alaska, North Dakota, Texas, West Virginia, Oklahom aand Louisiana. CDK offered services in Texas, Oklahoma, West Virginia, eastern Ohio, North Dakota, southern New York and Pennsylvania. IPS operated in Canada.
The new company plans to continue making strategic acquisitions, and is currently planning to buy Peak Pressure Control, a pressure-control services company, and Dak-Tana Wireline, a wireline services company.
Other energy-services transactions include Access Midstream Partners LP’s (NYSE: ACMP) February purchase of natural gas compression assetsfrom MidCon Compression LLC for $160 million, and American Midstream Partners LP’s (NYSE: AMID) purchase of a natural gas gathering system for $100 million in January.
An increase in new and used car sales is fueling M&A activity. Recent deals include Avic Electromechanical Systems Co. Ltd. acquisition of Hilite International from private equity firm 3i Group plc for 473 million (U.S. $644.1 million), and Huron Capital Partners deal for American Auto Auction Group.