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Nine Energy Services sells workover fleet to Brigade

US oilfield services player Nine Energy Services has sold its production solutions segment to private equity-backed Brigade Energy Services for $17 million in cash, writes Caroline Evans.

The deal makes Nine a pure-play completions-focused services provider while also making Brigade the largest privately held well-services company, according to a release.

The assets sold consist of 107 workover rigs, ancillary equipment and real estate associated with 13 operating facilities around the country.

"Brigade’s sole focus on excellence in the well service space, coupled with the Brigade management team’s strong leadership capability, gives us comfort our team will be in good hands," said Nine chief executive Ann Fox.

"This transaction makes Nine a pure-play, asset-light completions company with differentiated technology and service offerings."

Bruce Morgan, who had previously served as Nine’s president of production solutions, will become president, administration and operations where he will report to David Crombie, Nine’s chief operating officer.

Analysts said the deal was a step in the right direction for Nine. Financial services firm Tudor Pickering Holt said the transaction was accretive in terms of earnings per share, return on invested capital, and earnings before interest, taxes, depreciation and amortisation.

"Plus it allows Nine to focus on its core completions oriented businesses," TPH said in a note.

Brigade chief executive Justin Bliffen said: "We are excited to acquire the exceptional people, robust fleet, and proud operational history of the Nine Production Solutions family of businesses."

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