ARC Energy Fund 8, a private equity fund advised by ARC Financial Corp., completed the take-private acquisition of STEP Energy Services Ltd. by way of a plan of arrangement under section 193 of the Business Corporations Act (Alberta). The transaction closed on December 16, 2025, following a definitive arrangement agreement entered on October 17, 2025 that superseded an earlier arrangement agreement announced in November 2024. Under the completed arrangement, the purchaser parties acquired all issued and outstanding common shares of STEP not already owned, controlled or directed by ARC Energy Fund 8 or ARC Energy Fund 6 for cash consideration of $5.50 per share. The arrangement was carried out through STEP, ARC Energy Fund 8, and 2659160 Alberta Ltd., a corporation wholly owned by the limited partnerships comprising ARC Energy Fund 8. Prior to closing, ARC Energy Fund 8 and ARC Energy Fund 6 collectively held approximately 55.20 percent of the outstanding shares. Pursuant to the arrangement, ARC Energy Fund 8 acquired 24,700,000 shares and the purchaser acquired 7,958,832 shares, while ARC Energy Fund 6 retained the 13,588,546 shares it held prior to completion. In connection with the arrangement, STEP obtained a formal valuation from Ernst & Young LLP, which determined a fair market value range of $4.80 to $5.70 per share as at October 14, 2025. ATB Financial acted as sole lead arranger and bookrunner for the fully underwritten secured senior credit facilities supporting the acquisition. STEP applied to delist its shares from the Toronto Stock Exchange. STEP provides coiled tubing, fluid and nitrogen pumping, and hydraulic fracturing services.

Burnet, Duckworth & Palmer LLP acted as legal advisor to the Special Committee, Stikeman Elliott LLP advised STEP, and ARC’s advisors included RBC Capital Markets, ATB Capital Markets, and Norton Rose Fulbright Canada LLP, with ATB Financial providing a fully underwritten senior credit facility.

STEP’s shares are expected to be delisted from the TSX upon completion.