CERC enters agreement to sell waste management division
Nov. 29, 2016 - Canadian Equipment Rentals Corp. has announced that it has entered into an agreement with GFL Environmental Inc. ("GFL"), to sell 100% of the issued and outstanding shares of its wholly-owned subsidiary, MCL Waste Systems & Environmental Inc. ("MCL"), for cash proceeds of $12.0 million.
“This transaction advances our strategy of focusing on our core rentals divisions,” said Austin Fraser, President of CERC. “The cash proceeds from the sale will be used to reduce bank indebtedness and provide us with greater flexibility through the prolonged oil and gas downturn. MCL is a solid business and we are pleased that our employees will be joining a best-in-class environmental services provider in GFL.”
The transaction, which is expected to close on or around December 1, 2016, is subject to approval by the TSX Venture Exchange and is subject to customary closing conditions. PillarFour Capital Inc. is acting as exclusive financial advisor to CERC with respect to the transaction.
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