Select Water Solutions Acquires Pilot Water for $700M
Select Water Solutions, Inc. announced a definitive agreement to acquire Pilot Water Solutions LLC for $700 million in cash and stock, plus a potential $15 million contingent payment. The acquisition, valued at $715 million, is expected to close in the fourth quarter of 2026 and is projected to add significant EBITDA and cost synergies. This strategic move is anticipated to strengthen Select's infrastructure business, making it approximately 70% of the company's pro forma profitability by 2027, while maintaining a strong balance sheet with pro forma net leverage below 2.0x.
Key Highlights
- Select Water Solutions to acquire Pilot Water Solutions for $700 million cash and stock, plus $15 million contingent payment.
- Transaction valued at $715 million, representing a 6.8x EV / 2026E Adj. EBITDA multiple.
- Pilot Water is expected to add $120-$130 million in 2027E EBITDA, with $10-$15 million in targeted cost synergies.
- Acquisition strengthens Select's infrastructure-led business, projecting Water Infrastructure to be ~70% of pro forma profitability by 2027.
- Pro forma net leverage expected to be less than 2.0x at closing.
- Pilot Water has a robust contract portfolio with 480,000 barrels per day of minimum volume commitment contracts.
- Transaction expected to close in Q4 2026, subject to customary closing conditions and regulatory approvals.
Price Impact
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