Lindon-based Profire Energy Inc., a technology company which creates, installs and services burner and chemical management equipment in the oil and gas industry, has announced that has entered into an agreement to acquire Midflow Services LLC. The transaction closed Aug. 5.
Profire paid a total purchase price of $3.4 million, including $1.9 million paid in cash to the sellers at closing, $500,000 placed in a one-year escrow to secure the sellers’ post-closing obligations to Profire and the issuance of $1 million in restricted shares of Profire common stock.
Midflow becomes Profire Energy’s wholly owned subsidiary.
Based in Millersburg, Ohio, Midflow designs, builds and services burner control, production process and safety shut-down systems for the oil and gas industry, specializing in upstream and midstream oil and gas production equipment.
“We are extremely pleased to announce the acquisition of Midflow Services,” said Brenton W. Hatch, president and CEO of Profire. “Much like Profire, Midflow has established an unmatched reputation of expertise and reliability. Acquiring Midflow and its current team –– which has over 65 years of combined oil and gas experience –– serves to further enhance Profire’s position as the industry leader in service and technology.”
“Midflow has been one of Profire’s most prominent authorized service providers and product resellers for years,” said Cameron Tidball, chief business development officer for Profire. “This acquisition represents a significant step in our strategic path to strengthen our market position, as well as expand our current and future product offerings to upstream and midstream operators.”