Select Water Solutions to Acquire Pilot Water Solutions for $700M in Cash and Stock

Select Water Solutions (WTTR) has entered into a definitive agreement to acquire all membership interests of Pilot Water Solutions LLC in a transaction valued at over $700 million. The deal is comprised of $600 million in cash and $100 million in WTTR Class A common stock, plus a potential contingent payment. In a separate, unrelated transaction, the company also sold a majority stake in its Peak Rentals business.

Key Details

• Acquisition Terms: The total consideration includes $600 million in cash (subject to adjustments), $100 million in WTTR Class A common stock, and a potential $15 million contingent payment based on operational milestones.
• Timeline & Financing: The acquisition is expected to close in the fourth quarter of 2026, subject to regulatory approvals. WTTR has secured debt financing commitments to fund the transaction.
• Equity Protection: The stock component includes a price protection feature, providing for a potential cash true-up payment to the sellers if WTTR's stock price is below the closing price six months after the deal closes.
• Separate Divestiture: On September 23, 2026, WTTR sold a 55% interest in its Peak Rentals business for approximately $41.5 million in cash and a $35.3 million seller note. WTTR will retain a 45% indirect interest and will no longer consolidate Peak Rentals in its financial results.