TETRA Technologies, Inc. (NYSE:TTI) has disclosed that the planned acquisition of SwiftWater Energy Services has been completed at a price of $40 million and shares amounting to over seven million. SwiftWater Energy Services will now join the fluids business division of Tetra. The deal will assist Tetra in expanding its Permian Basin market share and provide water management as well as water solutions to gas and oil operators in the region.
Besides expanding and diversifying the product portfolio and market footprint of Tetra, the deal will also increase the human resources that Tetra Technologies possesses. This is because the SwiftWater’s management team as well as the employees will be absorbed by Tetra and are expected to pay a key role in the company’s operations in West Texas.
“We are pleased to welcome SwiftWater’s employees whose experience, brand and culture is a natural complementary fit with TETRA. We look forward to a smooth integration of SwiftWater’s assets, operations and people,” Tetra Technologies’ chief executive officer, Stuart M. Brightman, said.
In order to fulfil the requirements of the New York Stock Exchange Tetra has also revealed that employment inducement awards have been authorized by the company’s board of directors following the SwiftWater acquisition. Thirteen employees will thus be issued with restricted stock to the tune of 420,992 shares and this will become effective when the acquisition closes. To benefit from the inducement award the employees must continue their employment with the firm. Vesting of 100% of the stock can be done on the 3rd anniversary from the date of grant.
Shedding off businesses
This comes in the wake of Tetra Technologies disclosed that the divestiture of Maritech operations as well as offshore leases and diving, cutting, decommissioning, abandonment and plugging, offshore heavy lift and related consulting services businesses had been completed. The subsidiaries that Tetra sold in this divestiture exercise include Maritech Resources Inc, Epic Diving & Marine Services LLC, TSB Offshore Inc and Tetra Applied Technologies LLC.
Epic Offshore Specialty LLC and Orinoco Natural Resources LLC acquired the businesses from Tetra. Coupled with the SwiftWater acquisition the divestiture will assist Tetra in its plans for long-term growth.