Flowco Closes $113 Million Lifting Solutions Acquisition

Flowco Holdings closed its acquisition of Lifting Solutions Energy Services for approximately $113 million in cash, adding continuous rod and progressing cavity pump technology to its artificial-lift portfolio. The purchase gives the Houston-based production-optimization company a larger presence in Canada and international markets while extending its offering into rod lift and PCP applications used later in a well’s producing life.

The Form 8-K filed with the Securities and Exchange Commission shows that Flowco’s Canadian subsidiary bought all outstanding equity interests in Edmonton-based Lifting Solutions for C$159 million in cash, subject to customary adjustments. Flowco translated that amount to about US$113 million using a CAD/USD exchange rate of 0.71, and the purchase agreement was signed and the acquisition closed on October 2, 2026.

Flowco funded the cash consideration with borrowings under its existing asset-based lending facility. The sellers are also eligible for up to C$10 million in additional consideration based on Lifting Solutions’ 2027 financial performance, with any payment due in early 2028. Flowco said it expects the acquisition to add to earnings and free cash flow per share, although those benefits remain forward-looking expectations rather than realized results.

Continuous rod and PCP expand Flowco’s later-life offering

Lifting Solutions was founded in 2014 and manufactures artificial-lift products for oil and gas operators in Canada, the United States, the Middle East and other international markets. Its main technologies include Endless Rod, a continuous sucker-rod system, and progressing cavity pumps, along with proprietary rod coatings and other equipment designed to reduce wear, workovers and lifting costs.

That product mix fills a gap in Flowco’s existing platform. Before this acquisition, Flowco’s Production Solutions business centered on high-pressure gas lift, electric submersible pumps, conventional gas lift and plunger lift. Adding continuous rod and PCP gives the company a broader set of options for wells as reservoir pressure declines and production conditions change over time.

Lifting Solutions describes Endless Rod as a continuous sucker-rod product for reciprocating rod pump and PCP applications. Unlike a conventional jointed sucker-rod string, it uses very few couplings, reducing common wear points and lowering the weight of the rod string. The company says the lighter design can reduce stress on surface equipment and help operators use rod lift in deeper or more challenging wells without increasing the size of the surface pumping unit.

Flowco’s acquisition presentation places that technology squarely in the rod-lift market. The company said Endless Rod is a common component in both reciprocating rod lift and PCP installations, and it illustrated reciprocating rod lift with a surface pumping unit driving a rod string connected to a downhole pump. That is the operating context in which pumpjacks are commonly used, although Flowco has not said that it manufactures or sells the pumpjack unit itself.

Management’s presentation also gives a sense of the acquired business’s installed base. Flowco said Lifting Solutions has supplied about 45 million feet of Endless Rod and roughly 26,000 PCPs since inception. Those are company-reported operating figures, not independently audited market-share statistics, but they indicate that Flowco is buying an established product platform rather than an early-stage technology.

Canada becomes a larger part of Flowco’s footprint

The acquisition also changes Flowco’s geographic mix. Lifting Solutions is headquartered in Edmonton and operates manufacturing capacity in Canada and Oman, with service locations and customers across several international oil-producing regions. Flowco said about 10% of its revenue will come from outside the United States after the purchase, based on management estimates.

Canada is particularly relevant to the new portfolio because mature Western Canadian wells use a broad range of artificial-lift methods, including rod lift and PCP systems. Flowco’s presentation identifies Western Canada as a large installed market for those technologies and describes Lifting Solutions as a platform for selling both its own products and Flowco’s gas lift, ESP, plunger lift and other production technologies to a wider customer base.

The company is also adding manufacturing capability rather than only a sales channel. According to Flowco’s deal materials, Lifting Solutions operates a 75,000-square-foot headquarters and manufacturing center in Edmonton for Endless Rod and PCP products and a 40,000-square-foot Endless Rod manufacturing facility in Salalah, Oman. Flowco is using those operations as a base for further growth in Canada, the Middle East and other international markets.

Flowco estimated Lifting Solutions’ 2027 adjusted EBITDA at about $23 million and put the initial purchase price at roughly five times that figure. Adjusted EBITDA is a non-GAAP measure and the 2027 amount is a management estimate, so the multiple depends on future operating performance. The contingent C$10 million payment creates an additional link between the final acquisition cost and how the business performs next year.

The acquisition follows Flowco’s Valiant purchase

Lifting Solutions is the second major artificial-lift acquisition Flowco has completed in 2026. In March, the company closed its purchase of Valiant Artificial Lift Solutions for approximately $200 million in total consideration, adding electric submersible pump systems and strengthening Flowco’s presence earlier in the production life of a well. Lifting Solutions extends the strategy in a different direction by adding rod lift and PCP technologies that are often used as wells mature.

The sequence helps explain why Flowco is emphasizing a wider life-of-well offering. ESPs can handle high production volumes, while gas lift, plunger lift, rod lift and PCP systems serve different well conditions and stages of decline. Flowco is building a portfolio that lets it remain involved as operators move from one artificial-lift method to another rather than competing in only one part of the production cycle.

Flowco had substantial borrowing capacity before the latest purchase. When it reported second-quarter results in August, the company said it had $274.1 million outstanding under its revolving credit facility as of August 7 and about $446.4 million of remaining availability. The same quarter produced $235.9 million of revenue, $30.9 million of net income and $49.8 million of free cash flow as defined by the company. Those figures predate the Lifting Solutions acquisition and should not be read as Flowco’s post-closing debt or liquidity position.

The new borrowing used for Lifting Solutions will raise the amount drawn under Flowco’s credit facility from that earlier level, but the company did not disclose a post-closing balance in the acquisition announcement. The next financial report will provide a clearer view of how the purchase affects debt, interest expense and cash generation alongside the contribution from Lifting Solutions.

For now, the measurable change is in Flowco’s operating scope. It has added a Canadian manufacturing platform, exposure to continuous rod and PCP markets, and a larger international customer base for $113 million in initial cash consideration. The final cost could rise if Lifting Solutions meets the 2027 performance conditions tied to the additional C$10 million payment.