ACT ENERGY TECHNOLOGIES COMPLETES ACQUISITION OF STRYKER DIRECTIONAL, EXPANDING PRESENCE IN THE SOUTHERN UNITED STATES
Executive Summary
- ACT Energy Technologies completed the acquisition of Stryker Energy Directional Services for a total consideration of USD $24.2 million (≈ CAD $34 million).
- The purchase price was funded with cash (USD $12.5 M), a 3‑year subordinated promissory note (USD $6.7 M at 6% interest), and ACT common shares (USD $5.0 M, 1,299,394 shares at $5.29 per share).
- The deal expands ACT’s U.S. footprint, adds ten RSS drilling tools to its fleet, and is expected to generate > CAD $5 million of annual synergies with a pay‑back period of less than 2½ years, accreting net income, Adjusted EBITDAS and free cash flow.
Key Details
- Transaction Consideration:
- USD $12.5 M cash paid at closing.
- USD $6.7 M promissory note (3‑year term, 6% interest; $2.5 M payable at 12‑ and 24‑month anniversaries, $1.7 M at 36 months).
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USD $5.0 M in ACT common shares issued at a deemed price of $5.29 per share (1,299,394 shares).
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Equity Issuance to Stryker:
- Additional 727,660 ACT common shares (“Stryker Shares”) sold at $5.29 per share for gross proceeds of USD $2.8 M (CAD $3.85 M) in a concurrent private placement.
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Both the Acquisition Shares and Stryker Shares are subject to a four‑month statutory hold period and staggered resale restrictions (30%/40% release for Acquisition Shares; 25% released annually over four years for Stryker Shares).
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Synergy & Financial Impact:
- Expected annual synergies > CAD $5 M, primarily from replacing rented mud motors with ACT‑owned inventory.
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Payback period projected at <2.5 years; transaction expected to be accretive to net income, Adjusted EBITDAS and free cash flow.
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Operational Enhancements:
- Adds Stryker’s fleet of 10 RSS tools to ACT’s existing 30‑tool RSS fleet, strengthening the high‑value directional drilling segment.
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Increases ACT’s U.S. job count in the Southern United States; Stryker averaged ~17 active jobs per day in 2025.
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Pre‑ and Post‑Acquisition Financial Snapshot (CAD):
| Metric | Pre‑Acquisition | Post‑Acquisition |
|---|---|---|
| Common Shares Outstanding (Basic) | $33.14 M | $35.17 M |
| Cash | $34 M | $20 M |
| Loans & Borrowings | $62 M | $62 M |
| Exchangeable Promissory Notes | $27.4 M | $27.4 M |
| New Promissory Note (from acquisition) | $nil | $9.2 M |
- Advisors: Peters & Co. Limited (financial advisor); DS Lawyers Canada LLP (Canadian legal counsel); Porter Hedges LLP (U.S. legal counsel).
Notable Quotes
“We are excited to welcome Stryker's management team and employees to ACT. Their expertise and operational track record will strengthen our U.S. platform and enhance our ability to serve customers with high‑value drilling technologies.” – Tom Connors, President & CEO, ACT Energy Technologies.
The release contains forward‑looking statements regarding expected synergies, integration benefits, and financial impacts.