Houston, Feb 03 — Flowco Holdings Inc. (NYSE: FLOC) (“Flowco” or the “Company”), a provider of production optimization, artificial lift, and methane abatement solutions for the oil and natural gas industry, today announced that it has entered into a definitive agreement to acquire the parent company of Valiant Artificial Lift Solutions LLC (“Valiant”), one of the largest private, pure-play providers of electric submersible pump (“ESP”) systems in the United States, for a total consideration of approximately $200 million, subject to adjustment in accordance with the purchase agreement. Founded in 2016, privately-held Valiant provides ESP systems, linear ESP systems, surface fluid transfer systems, and well surveillance solutions to operators primarily in the Permian Basin.
The transaction reflects an attractive valuation, with a purchase multiple estimated to be approximately 3.9x Valiant’s 2026E Adjusted EBITDA, excluding potential synergies, and is expected to be accretive to key metrics, including earnings and free cash flow per share.
Transaction Highlights and Strategic Rationale
Portfolio Expansion – Creates a differentiated artificial lift provider, combining HPGL, ESP and other artificial lift capabilities to support customers with the right solutions over the life of the well
Established Operator – Acquisition of an established ESP operator with a demonstrated ability to gain market share, providing a platform for accelerated growth
Addressable Market Expansion – ESP offering materially expands Flowco’s addressable market, enabling participation in applications where operating requirements favor ESP selection
Revenue Growth Opportunities – Unlocks new revenue opportunities through cross-selling within the combined customer base
Attractive Financial Profile – Consistent with Flowco’s disciplined approach to capital deployment; attractive financial profile, with expected accretion to earnings and free cash flow per share
Joe Bob Edwards, President and Chief Executive Officer of Flowco, commented, “We are pleased to add Valiant’s strong team and complementary ESP offering to Flowco’s portfolio. Valiant has established itself as a leading independent ESP provider in the Permian through a service-oriented culture that aligns well with our own, supported by proven technology and deep relationships with high-quality operators. By combining Valiant’s ESP capabilities with our existing artificial lift portfolio, we expand our ability to support customers earlier in the well’s producing life and maintain ongoing involvement as operating conditions evolve, creating additional touchpoints over the life of the well. We see meaningful opportunities to leverage our combined footprint and customer relationships to cross-sell these complementary technologies across both customer bases—supporting continued growth in the Permian, other U.S. basins, and select international markets. This transaction represents another step forward in our strategy to deliver the right solution in each well, every time.”
Gareth C. Ford, CEO of Valiant, stated, “We look forward to joining Flowco’s leading production optimization platform. As part of Flowco, we see tangible opportunities to expand our position in the ESP market. I look forward to this next phase of the company’s growth as we leverage our combined platforms to support continued growth in the Permian and other key basins.”
Transaction and Timing
The total consideration payable in the acquisition is approximately $200 million, structured as (i) $170 million in cash, subject to adjustment in accordance with the purchase agreement, and (ii) approximately 1.5 million shares of Flowco Class A common stock, which was based on the 10-day volume-weighted average price as of January 30, 2026. The transaction is structured as a cash-free, debt-free purchase, and Flowco intends to use borrowings under Flowco’s ABL facility to fund the cash consideration.
The pending transaction, which is expected to close in March 2026, is subject to customary closing conditions and receipt of required regulatory approvals, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.