CALGARY — Peak Energy Services Ltd. (TSX:PES) has agreed to a $200-million takeover offer from Clean Harbors, Inc. (NYSE:CLH), a Boston-area company that provides environmental, energy and industrial services. The offer of 95 cents per share was 28 per cent above Tuesday’s closing price for Peak’s shares on the Toronto Stock Exchange. In trading Wednesday, Peak shares soared 19 cents, or 25.68 per cent, to 93 cents on volume of almost 8.3 million shares, making it the third most active issue on Toronto’s main board.
On the New York Stock Exchange, Clean Harbors shares gained $5.85, or 5.86 per cent, to close at US$105.72. Peak said Wednesday its board of directors backs the Clean Harbors’ takeover proposal and has scheduled a shareholder meeting May 25 to vote on the deal. To pass, the deal requires two-thirds of the votes cast at the meeting. Curt Whitteron, Peak’s president and CEO, said the company believes “this transaction provides fair value for Peak’s business at this point in the cycle and full liquidity to all of its shareholders.”
“Clean Harbors will no doubt create opportunities for Peak to significantly expand its businesses through the combination of its broad geographic network, extensive customer base and access to growth capital. The cultures of Clean Harbors and Peak also appear to be very much aligned with a safety first attitude. . . ”
Alan McKim, Clean Harbors’ chairman and CEO, said the transaction “will substantially expand our presence in the energy services marketplace, particularly in the area of oil and natural gas drilling and production support.”
“Peak is an attractive acquisition due to its excellent workforce, well-maintained fleet of equipment, outstanding customer base and strategic locations in North America. Peak ideally complements Clean Harbors’ current capabilities, providing major energy customers a one-stop shop for drilling and production support services.”
About 53.6 per cent of Peak’s outstanding shares, held by Deans Knight Capital Management as well as Peak’s directors and officers, have been pledged in support of the transaction.
To pass, the deal requires two-thirds of the votes cast at the meeting.
Peak has agreed to pay up to $7.3 million to the U.S. company under certain circumstances while Clean Harbour will pay up to $4.5-million to the Calgary company in other situations if the deal is completed.
Peak Energy Services Ltd. is a diversified energy services organization operating in western Canada and the United States of America. It provides drilling and production services in the oil and natural gas industry and water technology solutions to customers in North America.