Two Red Deer-based Alberta oilfield companies have merged to create a global manufacturer of cable and coiled tubing pressure control equipment.
Lee Specialties Inc. and Nexus Energy Technologies Inc. announced a merger Wednesday to form NXL Technologies Inc., which they hope will lay the foundation for international expansion and allow them to serve billion-dollar customers.
The new entity will provide the energy sector with the sale, rental, service and repair of proprietary blowout preventers, remote well connections, accumulators, lubricators, electric cable slides and ancillary equipment.
“This is the perfect deal at the right time. We are very excited to bring the Nexus and Lee teams together to expand our global presence, enhance innovation and realize significant growth synergies between the two companies,” Nexus President Ryan Smith said.
“When we leverage the strengths, diversity, knowledge and capabilities of both organizations, we emerge stronger and will serve our customers better. This combination also benefits our employees, shareholders, suppliers and the communities in which we operate bring tremendous value.”
According to a press release, the combination can increase and balance international reach, bringing service locations to markets and customers that need it.NXL will have approximately 125,000 square feet of advanced manufacturing space.They will also have service locations in Red Deer, Grand Prairie, and the U.S. and overseas.
“Nexus’ market-leading coiled tubing pressure control equipment products are a great addition to Lee’s suite of cable pressure control equipment. They have an incredible brand and reputation, and together we will bring the best of new technology and Aggressive expansion in international markets to better serve our customers,” said Chris Oddy, President of Lee Specialties.
Lee is a globally recognized manufacturer of cable pressure control equipment, and Nexus is a leading manufacturer of coiled tubing pressure control equipment in North America with a significant presence in the Middle East and other international markets.
Houston-based Voyager Interests invested in Lee this summer.They are a private equity firm focused on investing in low- and mid-market energy services and equipment companies
“Voyager is delighted to be part of this exciting platform that will include advancing automated electric cable skids that will be at the forefront of our customers’ ESG initiatives in completions and interventions. We have many exciting initiatives, said David Watson, Voyager Managing Partner and NXL Chairman.
Nexus said it is also committed to the global transition to carbon neutrality and environmental sustainability, using its state-of-the-art innovation lab to create environmentally sustainable solutions in all aspects of its operations.