CALGARY, July 21, 2016 /CNW/ - Horizon North Logistics Inc. ("Horizon North" or the "Corporation") (TSX – HNL) announced today that it has entered into a Binding Letter of Intent with respect to the acquisition of Empire Camp Equipment Ltd. ("Empire").
Horizon North and Empire have agreed to a purchase price of approximately $44.5 million, payable through a combination of cash and newly issued Horizon North common shares. The Binding Letter of Intent is subject to certain conditions including the results of formal due diligence and the receipt of all necessary and required consents including from the TSX and the Corporation's lending syndicate. The transaction is scheduled to close in late August 2016.
"The strategic acquisition of Empire will help to diversify Horizon North's geographical footprint by gaining exposure to non-energy based projects as well as additional traction in our traditional markets. Empire's high quality, recently manufactured assets will be a great fit with Horizon North's existing fleet profile and allow us to gain additional operational efficiencies and economies of scale." commented Rod Graham, President and Chief Executive Officer of Horizon North.
Mr. Graham continued, "Through our ongoing process of transformational change, Horizon North has focused on building a solid corporate platform able to support additional operating capacity without significantly increasing management or administration resources. With this transaction, Horizon North continues to demonstrate leadership in response to both the continued challenging commodity price environment and the demands of our customers. The strength of our balance sheet allows for us to take advantage of strategic opportunities as they arise."
Jeff Strank, Director of Empire commented, "My business partner, Brian Rogers, and I started Empire with the vision of creating the premiere camp and workforce accommodations equipment provider in Western Canada. To date, our success has been accomplished through the relentless pursuit of exceeding our customer's expectations, both in terms of service and asset quality. We are thrilled to have found a partner in Horizon North that shares our common values and can help accelerate our growth trajectory. This is a truly exciting opportunity for both companies."
Empire is a Western Canadian focused provider of camp and wellsite buildings with approximately 1,700 beds and supplemental camp support equipment. Empire provides camp and wellsite buildings to the Energy, Mining and Construction sectors. Empire prides itself on their vast industry knowledge and ability to provide the most flexible and intuitive options in the modular rental business. With over 45 years of industry experience, Empire's focus on unique equipment solutions, while providing the most current and sophisticated buildings, has enabled them to build and maintain a strong client base.
For further information about Empire, please visit their website at www.empirecamp.ca
About Horizon North
Horizon North is a publicly-listed corporation (TSX: HNL.TO) that provides full service solutions in camp management accommodations and catering, matting and soil stabilization, remote power and energy generation systems, and relocatable and permanent modular structures. Horizon North provides a full range of these services to top tier clients in the LNG, oil sands, oil and gas, mining/exploration, forestry and construction sectors. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers anywhere in Canada and Alaska.
Additional information related to the Corporation, including the Corporation's annual information form, press releases, financial statements, and MD&A are available on SEDAR at www.sedar.com and www.horizonnorth.ca
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Horizon North. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "expects", "anticipates" and similar expressions. This press release contains forward-looking statements pertaining to, among other things, the following: the timing of completion of the acquisition; the aggregate purchase price of the acquisition; the issuance of Horizon North common shares as part of the purchase price for the acquisition; the results of a formal due diligence process; Horizon North receiving all required approvals for the acquisition, including regulatory approvals and approval from its lending syndicate; the synergies, geographical diversification, leadership recognition and potential growth opportunities created by combining the business of Empire with Horizon North.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Horizon North as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Horizon North contained in this press release, which may prove to be incorrect, include: the ability of Horizon North to receive all required regulatory approvals and approval from its lending syndicate; the ability of Horizon North to satisfy the conditions to the acquisition; the anticipated benefits of the acquisition and the successful integration of Horizon North and Empire as a single entity following closing of the acquisition of Empire.
Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Horizon North and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward-looking information. The material risk factors include, but are not limited to: failure of Horizon North to obtain necessary regulatory approvals; failure of the parties to satisfy, in a timely manner, the other conditions to closing of the acquisition; failure to realize anticipated synergies and the continued demand for permanent modular structures. Readers are cautioned that the foregoing list of risk factors is not exhaustive.
Although Horizon North believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. Horizon North's actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and, except as required by applicable securities laws, Horizon North disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Horizon North Logistics Inc.
For further information: please contact Rod Graham, President and Chief Executive Officer or Scott Matson, Senior Vice President Finance and Chief Financial Officer, 1600, 505 - 3rd Street S.W., Calgary, Alberta T2P 3E6; Telephone (403) 517 - 4654, Fax (403) 517 - 4678; website: www.horizonnorth.ca