SLB has completed its acquisition of ChampionX, a strategic move set to enhance its production and reservoir recovery portfolio. This integration expands SLB’s market presence and accelerates digital adoption within the energy sector.
SLB announced the successful closure of its previously revealed acquisition of ChampionX Corporation. The completion of this deal sees ChampionX shareholders receiving 0.735 shares of SLB common stock for each ChampionX share, resulting in former ChampionX shareholders collectively holding approximately 9% of SLB's outstanding common stock.
This strategic integration is a game-changer for SLB, bringing ChampionX's robust portfolio of production chemicals and its complementary artificial lift, digital, and emissions technologies under the SLB umbrella. The enhanced combined portfolio is expected to drive superior performance, extend the operational life of assets across the production lifecycle, and offer more comprehensive solutions to customers worldwide.
The acquisition creates a powerful synergy by combining ChampionX’s established leadership in production-focused solutions and its extensive customer relationships, particularly strong in North America, with SLB’s formidable international presence and a long-standing history of innovation. This fusion is anticipated to unlock substantial value for customers and stakeholders across the globe, offering a more integrated and efficient approach to oil and gas production. Furthermore, the merger unites two distinct sets of experts, consolidating invaluable domain knowledge and customer insights spanning the entire production and recovery spectrum.
Olivier Le Peuch, Chief Executive Officer of SLB, highlighted the opportune timing of this acquisition, stating, "This acquisition comes at a pivotal time in the industry as our customers increasingly prioritize advancements in production to maximize recovery of oil and gas.” He emphasized that this strategic move significantly expands SLB’s footprint in a crucial and less cyclical market segment, aligning seamlessly with the company's returns-focused, capital-light core growth strategy. The acquisition not only extends SLB's capability to deliver integrated production solutions but also establishes another vital platform for accelerating digital adoption, optimizing production processes, and ultimately reducing the total cost of ownership for their valued customers.
SLB remains committed to its financial objectives, affirming its target to return $4 billion to shareholders in 2025. The company also anticipates realizing substantial annual pretax synergies from the ChampionX acquisition, projected to reach approximately $400 million within the first three years post-closing.
SLB is a global technology company focused on driving energy innovation for a balanced planet. Operating in over 100 countries with a workforce representing nearly 200 nationalities, the company is dedicated to daily innovation in oil and gas, delivering digital solutions at scale, decarbonizing various industries, and developing and scaling new energy systems to accelerate the energy transition.
