CALGARY, Oct. 1, 2014 /CNW/ - Petrowest Corporation (Petrowest) (PRW: TMX) announced today that it has closed the previously announced (August 22, 2014) acquisition of all the shares of CJM Trucking Ltd. for the purchase price of approximately $5.1 million plus the assumption of approximately $5.3 million of debt. The purchase price was paid with approximately $2.55 million in cash and the issuance of approximately 2.22 million Class A common shares of Petrowest having a value of approximately $2.55 million (based on a price per share of $1.15).
CJM Trucking Ltd. is a Fort Saskatchewan, Alberta-based private company providing heavy haul, oversized load and equipment hauling and equipment rentals in Western Canada and in the United States.
"We are excited about the acquisition of CJM Trucking. Petrowest has increased its geographic reach for heavy hauling and we have added another experienced management team to the Petrowest group," said President and Chief Executive Officer, Rick Quigley. "As we work to integrate CJM Trucking's business into the Petrowest group, we are optimistic that we will be able to rapidly realize operational synergies and benefit from our growing brand recognition and increased scale."
Petrowest also announced today that the closing of the acquisition of all of the shares of Trans Carrier Ltd. and Trans Carrier Rentals Ltd. is expected to occur on or about October 15, 2014.
Certain of the statements made and information contained herein, including the time required for closing of the TCL Acquisition and the expected benefits from the acquisition of CJM Trucking Ltd., is "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, risks and uncertainties relating to the volatility of industry conditions (levels of industry activity), the inherent uncertainty of operations and cost estimates and the potential for unexpected costs and expenses, the seasonality of operations, price fluctuations; uncertain political and economic environments; changes in laws or policies, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under risk factors in Petrowest's current Annual Information Form and management discussion and analysis. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. The forward-looking information contained herein is for the purpose of assisting investors in understanding Petrowest's plans and objectives and may not be appropriate for other purposes. Accordingly, readers are advised not to place undue reliance on forward-looking information.
Petrowest is an Alberta corporation involved in pre-drilling and post-completion energy services as well as industrial and civil infrastructure projects, gravel crushing and hauling for non-energy sector customers. Petrowest's primary operations are based in the Grande Prairie area of northern Alberta and in northeastern British Columbia.
SOURCE: Petrowest Corporation
For further information: please contact Richard Quigley, President and Chief Executive Officer, at (780) 830?0881, or Lloyd Wiggins, Chief Financial Officer, at (416) 572-2160, or info@petro?west.com.