01:13 PM EDT, 07/03/2025 (MT Newswires) -- Trican Well Service ( TOLWF ) on Thursday said it agreed to acquire Iron Horse Energy Services for $77.35 million in cash and approximately 33.76 million common shares of Trican and hiked its dividend by 10%.

The company said Iron Horse is a privately owned fracturing and coiled tubing services provider operating primarily in the Cardium, Charlie Lake, Mannville Stack, Viking, Montney and Shaunavon plays in the Western Canadian Sedimentary Basin.

The company said the acquisition will add over four fracturing spreads and 10 coiled tubing units, which will "augment Trican's leading services offering" throughout the Western Canadian Sedimentary Basin across the drilling, completion, and production lifecycles.

Following the acquisition, Iron Horse will operate as a wholly owned division of Trican and it Trican expects to retain all of the existing management and employees of Iron Horse.

The acquisition is expected to close in the second half of 2025 and following the closing, Tom Coolen, chairman and chief executive officer of Iron Horse, will be appointed to the board of directors of Trican.

"Iron Horse is one of few North American fracturing companies that has consistently demonstrated operational and financial performance that aligns with Trican," said Chief Executive Officer, Brad Fedora. "The acquisition will provide significant EBITDA, free cash flow and earnings accretion to Trican shareholders. It will also expand Trican's customer base into both conventional and unconventional plays in Alberta and Saskatchewan."

The company also said that following and pending closing of the acquisition, Trican's board approved a 10% increase to the quarterly base dividend to $0.055 per share, from $0.050 per share previously, which equates $0.220 per share on an annual basis.

The company said the first higher payout will be made on Sept. 30 to shareholders of record as of the close of business on Sept.12.

National Bank of Canada on Thursday maintained a sector-perform rating on Trican shares, while raising its price target to $6.50 from $5.75.

According to the bank, the Iron Horse purchase was a "solid & logical transaction" for the company, acquiring "complementary & synergistic assets," which should hold "potential upside & operating leverage" to compound the long-term value equation.

The company's shares were last seen up $0.68 to $5.24 on the Toronto Stock Exchange.

Price: 5.23, Change: +0.67, Percent Change: +14.69