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SLB (NYSE:SLB) said Tuesday it agreed to acquire ChampionX (CHX) in an all-stock deal, which it says will strengthen its leadership position in oilfield services with world-class production chemicals and artificial lift technologies.
Under the deal terms, ChampionX (CHX) shareholders will receive 0.735 shares of SLB (SLB) common stock in exchange for each ChampionX share; at the deal closing, ChampionX shareholders will own ~9% of SLB’s outstanding common shares.
Based on Monday’s closing prices, the deal values ChampionX (CHX) at ~$7.8B, or $40.59/share, which would be a 14.7% premium.
SLB (SLB), formerly Schlumberger, said it expects to realize ~$400M in annual pretax synergies within the first three years of the deal close through revenue growth and cost savings.
SLB (SLB) also said it plans to return $7B to shareholders over the next two years, raising 2024 shareholder returns to a target of $3B and setting a target for 2025 shareholder returns of $4B.
