Axip Energy sells international services business to Enerflex

Axip Energy Services, formerly known as Valerus Compression Services, will sell its international services business to Enerflex for $430 million in cash, subject to standard closing adjustments, officials said on Monday.

The transaction is subject to certain regulatory and other conditions and is expected to close in the late second quarter or early third quarter of this year.

All of Axip's international contract operations and its approximately 170 employees who work in that business will be transferred to Enerflex.

Axip said it intends to use the proceeds of the divestiture to continue reinvesting in its domestic contract services businesses and pay down debt.

This sale, in combination with the divestiture of the Valerus Field Solutions business earlier this year, will result in a business completely focused and aligned on continuing its rapid growth in the US shale plays with its contract services and aftermarket offerings.

"We are pleased to announce this transaction as it allows us to focus on the core business of Axip in the rapidly expanding US shale plays and creates an opportunity for Enerflex to increase the size and scale of its global product and services offerings," said Pete Lane, CEO of Axip.

Axip will work with its employees, customers and vendors to make the transition as seamless as possible.

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