A pair of Alberta oilfield companies based out of Red Deer have merged to create a global wireline and coiled tubing pressure control equipment manufacturer.
Lee Specialties Inc. and Nexus Energy Technologies Inc. announced the merger Wednesday, combining to form NXL Technologies Inc., which they hope will lay the foundation for international expansion, and position them to serve multi-billion-dollar clients.
The new entity will provide sales, rental, service and repair of proprietary blowout preventers, remote well-connection devices, accumulators, lubricators, electric-powered wireline skids and ancillary equipment to the energy sector.
“This is the perfect deal at the right time. We could not be more excited to bring together the Nexus and Lee teams to develop a broader global reach, enhance innovation and realize significant growth synergies between the two companies,” said Nexus president Ryan Smith.
“We’re stronger together and will provide better service to our customers as we bring forth the strengths, diversity, knowledge, and abilities of both organizations. The value this combination also brings to our employees, shareholders, suppliers and the communities in which we operate is immense.”
According to a release, the combination enables an increased and well-balanced international presence, bringing service locations to markets and customers that need it. NXL will have approximately 125,000 square feet of state-of-the-art manufacturing space. They will also have service locations in Red Deer, Grande Prairie, as well as in the U.S. and overseas.
“Nexus’ market-leading coiled tubing pressure control equipment offering is a great complement to Lee’s wireline pressure control equipment suite. They have an incredible brand and reputation and together we will bring the best new technologies and expand aggressively in international markets to better service our customers,“ said Lee Specialities president Chris Oddy.
Lee is a globally recognized manufacturer of wireline pressure control equipment, while Nexus is the leading manufacturer of coiled tubing pressure control equipment in North America, with significant shares in the Middle East and other international markets.
Voyager Interests, a Houston-based company, invested in Lee over the summer. They are a private equity firm committed to investing in lower middle-market energy services and equipment companies
“Voyager is thrilled to be a part of this exciting platform going forward, which will include the advancement of automated electric-powered wireline skids that will be on the forefront of customer ESG initiatives in the completion and intervention space. We have many exciting plans,” said David Watson, managing partner of Voyager and chairman of NXL.
Nexus says it is also committed to the global shift to carbon-neutral and environmental sustainability, leveraging their state-of-the-art innovation lab to create environmentally sustainable solutions across all aspects of their operations.