Enerflex Ltd. (TSX: EFX) is buying Axip Energy Services LP's international contract compression and processing business for $430 million in cash.
All of Axip's contract operations and about 170 of the company's employees will be transferred to Enerflex. Enerflex, headquartered in Calgary, Canada, provides products and services for natural gas compression, oil and gas processing, refrigeration systems and power-generation equipment.
Axip, which provides compression and production equipment, pre-engineered wellpad services, pipelines and gathering, processing and treating operations, plans to use the proceeds of the sale to continue investing in its domestic contract services businesses, and to pay down debt. The sale follows the Houston-based company's divestiture of Valerus Field Solutions in January.
Vinson & Elkins provided legal advice to Axip on the deal. Barclays (NYSE: BCS) acted as the company's financial adviser.
For more on the trend, see "3Qs With Craig Jarchow, Managing Director, Pine Brook Partners."