CALGARY, Sept. 10, 2015 /CNW/ - Canyon Services Group Inc. ("Canyon" or the "Company") is pleased to announce that it has agreed to acquire, through its wholly owned subsidiary Fraction Energy Services Ltd. ("Fraction"), all of the assets (the "Assets") of a private oilfield fluid hauling business located in Grande Prairie, Alberta (the "Acquisition"). These Assets have been operating in the Grande Prairie area since 2005 and come with a dedicated client list and a committed group of employees and will enhance Fraction's existing fluid storage, transfer and logistics services. Total consideration paid for the Acquisition will be $8.5 million cash plus $1.0 million in Canyon common shares. In addition, the previous owner will also be provided an earn-out for two years post-closing pursuant to which he will earn a portion of the EBITDA generated by the Assets. The Acquisition is effective September 11, 2015 and is expected to close on or about September 15, 2015. The book value of the Assets as at June 30, 2015 was approximately $11.5 million.
Brad Fedora the President and CEO of Canyon stated that, "We are confident that this acquisition will build on Fraction's fluid transfer and logistics capabilities and will advance Fraction's goal to provide its customers with comprehensive fluid management services."
The Board of Directors of Canyon (the "Board") continuously reviews the long-term capital structure of the Company and its corresponding dividend policy each fiscal quarter. At this time the Board has determined that given the uncertain industry conditions and the increasing availability of potential asset and corporate acquisitions, it is prudent to reduce the Company's quarterly dividend to $0.03 per share from $0.075 per share. This reduction will allow Canyon to preserve liquidity and provide the Company with the financial flexibility to pursue growth opportunities.
Pursuant to the above announcement, the Board has declared a quarterly dividend of $0.03 (3 cents) per share for holders of Canyon common shares. The dividend will be paid on October 23, 2015 to shareholders of record on October 9, 2015.
Shareholders are advised that this dividend is designated as an "eligible dividend" for Canadian income tax purposes.
Canyon's common shares trade on the Toronto Stock Exchange under the symbol "FRC". Canyon provides high-quality fracturing and related stimulation services to the oil and gas industry in the Western Canadian Basin.
SOURCE Canyon Services Group Inc.
For further information: Canyon Services Group Inc., 2900 Bow Valley Square lll, 255-5th Avenue S.W., Calgary, Alberta, T2P 3G6, Fax: 403-355-2211; Brad Fedora, President & CEO, Phone: 403-290-2491; or Barry O'Brien, Vice President, Finance & CFO, Phone: 403-290-2478