WesternOne Equity Announces Strategic Acquisition
Oct. 17, 2008 - Calgary - WesternOne Equity Income Fund has announced the signing of an acquisition agreement by one of its indirect subsidiaries to purchase the assets of Sure-Fire Propane Ltd. and Davis Heater Service Ltd., an equipment rental, construction heat and propane distribution business with locations in Edmonton and Calgary.
Oct. 17, 2008, Vancouver – WesternOne Equity Income Fund has announced the signing of an acquisition
agreement by one of its indirect subsidiaries to purchase the assets of
Sure-Fire Propane Ltd. and Davis Heater Service Ltd. (the "Acquisition"), an
equipment rental, construction heat and propane distribution business with
locations in Edmonton and Calgary.
The acquisition agreement contemplates WesternOne paying, at closing, a
combined purchase price of $24.4 million, which is subject to post-closing
adjustments. This transaction is expected to be completed, subject to
customary closing conditions, on or about October 1, 2008.
WesternOne will pay for the Acquisition using a combination of cash and
debt financing under an existing credit facility.
This transaction is expected
to be immediately accretive to WesternOne's unitholders and will reduce
WesternOne's payout ratio. The business earned approximately $6.0 million in
EBITDA for the twelve months ended December 31, 2007.
Mr. Darren Latoski, CEO of WesternOne, stated, "This transaction allows
WesternOne to acquire a business which has been a market leader in the
Northern Alberta equipment rental, construction heat and propane distribution
industry for over 23 years.
It will increase WesternOne's presence in
Alberta's robust construction and infrastructure markets and further
geographically diversify WesternOne's revenue streams."
"The Acquisition comes with an experienced management team within the
Northern Alberta market, with the expertise and relationships to develop and
further diversify WesternOne's operations in Western Canada. This Acquisition
is an excellent and opportune fit to our existing operations. As well as
adding a new and complementary platform in the business of propane
distribution, the Acquisition coincides with the start of the peak winter
season for construction heat and propane distribution, further balancing the
seasonality of WesternOne's revenue stream across all segments."
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