M&A

26 November, 2009

UPDATE 1-Canadian Energy to buy U.S-based Champion Drilling

* Total deal worth $16.7 mln

* To pay $10.4 mln in cash, $6.3 mln in debentures

* Deal to strengthen Canadian Energy's U.S. presence

Nov 26 (Reuters) - Canadian Energy Services (CEU_u.TO) said it would acquire U.S.-based Champion Drilling Fluids Inc in a deal valued at about $16.7 million to strengthen its foothold in the United States.

Canadian Energy, which makes drilling fluid systems for the oil and natural gas industry in western Canada and the United States, said it would pay $10.4 million in cash and $6.3 million in certain debentures as part of the deal.

Champion Drilling, an Oklahoma-based private drilling fluids services company, generated about $13.2 million in revenue for the first nine months of 2009, Calgary, Alberta-based Canadian Energy said. (Reporting by Amit Kumar in Bangalore; Editing by Deepak Kannan) ((amit.kumar.edit@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 4135 5800; Reuters Messaging: amit.kumar.edit@thomsonreuters.com@reuters.net))

Source: http://www.reuters.com