Civeo Corporation announced it has entered into a definitive asset purchase agreement to acquire four villages with 1,340 rooms in Australia’s Bowen Basin. The acquisition, valued at A$105 million, or approximately US$67 million, includes associated long-term customer contracts.
The transaction is expected to be immediately accretive to operating cash flow and will be funded with cash on hand and borrowings from Civeo's existing revolving credit facility. This move strengthens Civeo's presence in the Bowen Basin, entering the Blackwater region not previously served by its existing villages.
The acquired villages are largely contracted under two-to-three-year agreements with metallurgical coal producers. The acquisition is anticipated to close in the second quarter of 2025, subject to regulatory approvals and customary conditions.
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