First Reserve in C$596m oil driller take-private

The energy specialist has completed its acquisition of Toronto Stock Exchange-listed Saxon Energy Services for C$7 per share, partnering with Canadian oilfield services company Schlumberger.

US private equity firm First Reserve has purchased Canadian oil drilling and well maintenance company Saxon Energy Services in a C$596 million ($561 million, €382 million) take-private.

The Greenwich-based energy specialist partnered with Canadian oilfield services company Schlumberger in tendering a C$7 per share offer for Calgary-based Saxon last May. At the time, the offer represented roughly a 2 percent premium over the company’s previous day closing price.  

First Reserve and Schlumberger made the investment through jointly held acquisition company Sword Canada, which will acquire all of Saxon’s issued and outstanding common shares.

Saxon provides drilling services, well completion and workover services to oil and gas companies throughout North and South America. The company currently owns a fleet of 56 drilling rigs and maintains a significant presence in the US, Canada, Colombia, Ecuador, Mexico, Peru and Venezuela.

Saxon and Schlumberger are partners in joint drilling ventures in Mexico and Colombia that have resulted in Schlumberger being among Saxon’s largest customers.