Petrowest Corp Scoops Trucking Firms in $20-Million Deal
CALGARY, AB — Alberta-based pre-drilling and post-completion service provider Petrowest Corporation announced a 20-million deal to buy two heavy-haul trucking companies in Alberta and British Columbia.
Petrowest agreed to pay $1.25 per share for the purchase of B.C.-based Trans Carrier Ltd. and Alberta-based CJM Trucking.
Petrowest's President and CEO, Rick Quigley, commented: "The acquisition of both CJM Trucking and the Trans Carrier businesses is going to provide a number of synergies to Petrowest while increasing our service offerings, expanding our geographic presence and strengthening our team of experienced operators."
The agreement is subject to the receipt of applicable regulatory approvals (including the approval of the Toronto Stock Exchange and the securities regulatory authorities).
Trans Carrier Ltd. Acquisition
Petrowest will buy all the shares of Trans Carrier Ltd. as well as Trans Carrier Rentals Ltd., a related company that rents out oilfield equipment.
Trans Carrier transports service rigs, test equipment, plant site maintenance equipment and construction equipment, hauls contaminated soil and hazardous waste and crushes gravel in the western provinces of Canada and in the Northwest and Yukon territories.
“The services provided by the Trans Carrier businesses will complement the services currently provided by Petrowest in northeastern British Columbia,” Petrowest wrote in a statement.
In total, Petrowest will pay $11.5-million and will assume the $6-million of debt for the purchase of Trans Carrier and Trans Carrier Rentals. Petrowest has agreed to pay $5.8-million in cash and about $6-million based on a price per share of $0.95. The assumed debt is based on outstanding obligations at December 31, 2013. Closing is expected to occur on or before September 30, 2014, subject to customary closing conditions including financing.
The senior management team of Trans Carrier businesses, Tyler Kosick and Michael Kosick, will stay on with the company.
CJM Trucking Ltd. Acquisition
The second binding agreement is to buy all the shares of CJM Trucking Ltd. for $5.1-million plus the assumption of about $4.3 million of debt.
CJM Trucking Ltd. is a Fort Saskatchewan, Alberta-based private company providing heavy haul, oversized load and equipment hauling and equipment rentals in Western Canada and in the United States.
“The acquisition of CJM is expected to increase Petrowest's geographic reach for heavy hauling while adding an experienced management team, led by Cliff Moulaison and Jacquie Rocque, to the Petrowest group,” Petrowest wrote in a statement.
Petrowest will pay about $2.55-million in cash and about $2.22-millionbased on a price per share of $1.15. Closing is expected to occur on or before October 1, 2014, subject to customary closing conditions including financing.