CALGARY, May 5, 2014 /CNW/ - Petrowest Corporation ("Petrowest") (PRW: TMX) announced today that it has entered into a binding agreement to purchase all the shares of Enviro-Mulch Land Clearing Solutions Ltd. for the purchase price of $6.36 million plus the assumption of approximately $2.3 million of debt. Subsequent to closing, approximately $0.8 million of this assumed debt will be converted to an operating lease. The purchase price is to be paid with approximately $3.64 million in cash and the issuance of approximately 2.87 million Class A common shares of Petrowest having a value of approximately $2.73 million (based on a price per share of $0.95). Closing is expected to occur on or about May 12, 2014, subject to customary closing conditions.
Enviro-Mulch Land Clearing Solutions Ltd. is an environmentally sound land clearing and construction site preparation company operating in northeast British Columbia and northern Alberta.
Rick Quigley, Petrowest's Chief Executive Officer, stated "This acquisition truly allows Petrowest to be the 'first in' for oilfield and general construction services. We had previously followed Enviro-Mulch into our work sites and now with this acquisition, we will be working as one. Using our equipment and expertise to augment Enviro-Mulch's already robust business, Petrowest's influence will continue to expand in northeast British Columbia and northern Alberta." He continued, "We are also extremely pleased to add Enviro-Mulch's highly qualified team, lead by Jeff Doyle, into the Petrowest family. Petrowest's scope of services, especially for those driven by LNG opportunities, continues to increase", he concluded.
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.
This news release contains forward looking statements related to the time required for closing the proposed acquisition and the expected benefits of the transaction. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated.
SOURCE: Petrowest Corporation
For further information: Richard Quigley, President and Chief Executive Officer, at (780) 830?0881, or Ian Hogg, Vice President, Corporate Affairs, at (403) 384-0407 or [email protected]