CERF Incorporated acquires Empire Tool
By CERF IncorporatedNews
May 29, 2014 - CERF Incorporated has announced that it has purchased the business and assets of Empire Tool Inc. a Calgary-based, privately owned oilfield service and rental business through its subsidiary TRAC Energy Services Ltd.
May 29, 2014 – CERF Incorporated has announced that it has purchased the
business and assets of Empire Tool Inc. a Calgary-based, privately
owned oilfield service and rental business through its subsidiary TRAC
Energy Services Ltd. The purchase price for the Acquisition was approximately $9.3 million.
"The acquisition of Empire complements TRAC's oilfield service capability within Western Canada, and enhances our overall earnings ability," said Wayne Wadley, President of CERF. "We are excited to welcome Empire's management team to TRAC, who will be instrumental in integrating Empire's assets, sales capacity, and oilfield capabilities into our well established operating model."
The Empire assets will immediately enhance TRAC's capability to provide new and existing customers with more equipment used in directional drilling applications including: specialty and heavy weight drill pipe; drill collars and related handling equipment. Empire's assets operate primarily in the deep horizontal plays of Western Alberta and Northeast British Columbia.
Empire generated approximately $4.2 million in revenue and $2.8 million in adjusted and normalized EBITDA in the year ending March 31, 2014, and is expected to be immediately accretive to CERF shareholders. The Acquisition is payable by cash in the amount of $6.1 million, subject to a one year, $2 million hold back provision and through the issuance of $3.2 million in CERF common shares.
Raymond James Ltd. acted as financial advisor to Empire.
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