Civeo Corporation announced today 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 A$105 million, or approximately US$67 million, funded with cash on hand and borrowings from its existing revolving credit facility.
“This acquisition strengthens our presence in Australia’s Bowen Basin, where we have experienced significant occupancy growth in our existing owned-village portfolio over the last few years,” said Bradley J. Dodson, Civeo’s President and Chief Executive Officer. “These villages provide an attractive entry point into the Blackwater region of the Bowen Basin not currently served by our existing villages, supported by contracts with blue-chip metallurgical coal producers with significant investments in this region.
Mr. Dodson concluded, “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 second quarter of 2025, subject to regulatory approvals and customary conditions.
