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Investing.com — Select Energy Services (NYSE:WTTR), the water management solutions firm for the oil and gas industry, announced Monday that it has agreed to acquire Nuverra Environmental Solutions Inc (NYSE:NES) for approximately $45 million.
Shares of Nuverra, an energy-focused environmental solutions company, surged 98%, to $2.76, in reaction. Select shares have fallen around 5%.
The $45 million deal includes Select assuming Nuverra’s approximately $20 million of long-term debt. In addition, Nuverra shareholders will receive around 4.2 million shares of Select Energy Class A common stock in exchange for all outstanding shares of Nuverra.
Both boards have approved the deal and it is expected to close in the first quarter 2022.
Select said the acquisition will further strengthen its water services segment through the addition of landfill operations in North Dakota and a sizable pipeline and disposal infrastructure footprint across the Haynesville, Bakken and Northeast.
“The Nuverra acquisition will strengthen our geographic footprint with a unique set of water logistics and infrastructure assets, particularly in the Bakken, Haynesville and Northeast, while continuing to expand our production related revenues, explained John Schmitz, Select’s chairman, president and CEO.
