- ARC earlier this week said it would not increase the C$5 per share consideration
- Founded in 2011, Calgary-based Step provides coiled tubing, fluid and nitrogen pumping and hydraulic fracturing solutions
- Based in Calgary, ARC Financial is an energy-focused private equity firm
ARC Financial Corp and Step Energy Services, a Canadian oilfield services company, have mutually agreed to terminate the previously announced take-private acquisition of Step by ARC.
ARC in November announced it would acquire all of the issued and outstanding common shares of Step that it does not currently own or control or direct for C$5 per share in cash.
The decision to terminate the deal was made after it became clear that the requisite minority shareholder approval could not be achieved. ARC earlier this week said it would not increase the C$5 per share consideration.
“We entered into this agreement believing that this was in the best interest of Step and delivered value to our Step shareholders. Step has grown from a small upstart company in 2011 to one of the industry’s leading providers of coiled tubing and hydraulic fracturing services today,” commented Steve Glanville, president and CEO in a statement. “We are excited about what the future holds for our company. Our Canadian region is closing out its best ever year and despite the challenges in the U.S. market, our coiled tubing service line has grown market share by introducing cutting edge technology to clients.”
The termination is without liability or cost to any party.
Founded in 2011, Calgary-based Step provides coiled tubing, fluid and nitrogen pumping and hydraulic fracturing solutions. ARC initially invested in Step in 2011. The company went public in 2017, raising C$100 million.
Based in Calgary, ARC Financial is an energy-focused private equity firm. It has raised more than C$6.3 billion across eleven energy focused private equity funds.
