Canada’s Enerflex acquires Exterran Corporation

Enerflex is a premier integrated global provider of energy infrastructure and energy transition solutions. With enhanced scale and capabilities, Enerflex is optimally positioned to serve customers in key natural gas, energy transition, and produced water markets, which will enhance long-term shareholder value through sustainable improvements in efficiency, profitability, and cash flow generation.

Following the transaction, Enerflex's common shares will continue to trade on the Toronto Stock Exchange under the symbol ‘EFX’, and the Company commenced trading on the New York Stock Exchange under the symbol ‘EFXT’ on October 13.

"Today marks the beginning of the new Enerflex, and we couldn't be more excited to officially unite our talented teams and best-in-class capabilities to deliver leading modular energy solutions to our expanded customer base," said Marc Rossiter, Enerflex's president and CEO.

"With our premier global platform, diversified offerings, and cash-flow-generative business model, Enerflex is ideally positioned to opportunistically harness macro trends to meet the growing global need for natural gas and energy security and be resilient through all commodity cycles. We welcome our new colleagues and look forward to building upon the impressive legacies of both companies as we efficiently, thoughtfully, and reliably serve our customers and deliver sustained growth and value for shareholders."

In accordance with the merger agreement, Exterran stockholders will receive 1,021 common shares of Enerflex for each share of Exterran common stock held.

Immediately following the close of the Transaction, Enerflex will be focused on successfully integrating the two companies to become a more resilient, profitable, and efficient business, which includes delivering on expected cost savings and synergies of approximately U.S.$60 million annually. Discretionary cash flow will initially be directed at strengthening the Company's financial position, with Enerflex targeting its bank-adjusted net debt to EBITDA ratio to be below 2.5 times within 12 to 18 months.

Enerflex was co-advised on the merger by Mexican law firm Von Wobeser, with a team led by partner Alberto Córdoba, with associate Eugenio Chinchillas. The company was also advised by Davies Ward Phillips & Vineberg LLP.

“The transaction had a high level of complexity, since it entailed a planned merger, as well as structuring and executing certain secured credit facilities, including an offering of senior secured notes,” Von Wobeser said.