Civeo to acquire four villages in Australia for $67M, accretive to cash flow

Civeo (CVEO) announced that it has entered into a definitive asset purchase agreement with a private seller for Civeo to acquire four villages with 1,340 rooms in Australia’s Bowen Basin and the associated long-term customer contracts. Under the terms of the agreement, Civeo would acquire the assets and customer contracts for total cash consideration of Australian $105M, or approximately $67M, funded with cash on hand and borrowings from its existing revolving credit facility. Bradley J. Dodson, Civeo’s President and CEO said, “Upon closing, we expect the transaction to be immediately accretive to operating cash flow. We have strategically built a capital structure that enables us to allocate capital where we see attractive returns, balancing value-enhancing growth and continuing to return capital to shareholders through our dividend and share repurchase program. We look forward to discussing this announcement on our upcoming earnings call later this month.” This transaction is anticipated to close in the Q2, subject to regulatory approvals and customary conditions.