HOUSTON–(BUSINESS WIRE)–Civeo Corporation (NYSE:CVEO) 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.
About Civeo:
Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for lodging hundreds or thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications systems, security and logistics services. Civeo currently owns and operates a total of 24 lodges and villages in North America and Australia with an aggregate of approximately 26,000 rooms. In addition, Civeo operates and provides hospitality services at 22 customer-owned locations with more than 18,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo’s website at www.civeo.com
