VANCOUVER, Sept. 30, 2014 /CNW/ - WesternOne Inc. ("WesternOne") (Toronto Stock Exchange: WEQ, WEQ.DB, and WEQ.DB.C) today announced the closing of two acquisitions previously announced on September 9, 2014 (the "Acquisitions").
Acquisition of Enerbuilt
A subsidiary of WesternOne completed the purchase of the assets of Enerbuilt Technologies Inc. ("Enerbuilt") for a total consideration of $20 million (the "Enerbuilt Acquisition"). WesternOne funded the Enerbuilt Acquisition with $14 million of cash and the balance with common shares from the treasury of WesternOne, at an issuance price of $7.7425 per common share. The Enerbuilt Acquisition is subject to post-closing adjustments relating to capital expenditures, disposals and working capital.
Enerbuilt rents flameless heaters and provides related services primarily to oil & gas industry customers in Northern Alberta. Enerbuilt operates out of its two facilities in Nisku, Alberta and Fort McMurray, Alberta, and has a fleet of approximately 180 flameless heaters.
"We are very pleased to be welcoming Enerbuilt into the WesternOne family," said Peter Blake, WesternOne's CEO. "Enerbuilt has grown by focusing on similar values to those of WesternOne, including a passion for delivering innovative expertise and uncompromising levels of customer service. With Enerbuilt joining WesternOne's infrastructure services platform, we extend our ability and capacity to serve new and existing customers with expanded service and product offerings, and to us that is tremendously exciting."
Acquisition of Additional Membership Interest in Britco USA
An indirect subsidiary of WesternOne completed the acquisition of an additional 20% equity interest of Britco Structures USA LLC ("Britco USA") for US$8.5 million (the "Britco USA Acquisition"). As a result of the closing of the Britco USA Acquisition, WesternOne's indirect ownership of Britco USA has increased from 44.55% to 64.55%.
Britco USA's operations in Waco, Texas comprise one of Britco's four modular construction facilities located in North America. Since its inception in October 2011, Britco USA has become a major manufacturer of office complexes and workforce accommodations to support the energy, shale oil and gas, and construction and infrastructure sectors in the Mid-West and Southern United States.
"Since forming in the Fall of 2011, Britco USA has grown rapidly and today employs over 250 people. We anticipate continued activity and growth in the shale oil and gas sectors in the Southern and Midwest States and are well positioned to continue to serve the needs of our customers in those markets and to extend our product offering to customers in related construction channels," said Peter Blake.
"Our success to date in building two growing and successful brands through our Britco and WesternOne Infrastructure Services platforms and the exceptional teams who run them provide us a unique understanding of the construction, infrastructure and energy industries in North America, with a specific focus on Western Canada," said Peter Blake. "We intend to leverage our people's expertise and the growing market awareness of our brands to both fuel the growth of our two platform businesses and to acquire and grow businesses that complement our brands. By doing so, we will expand our geographic reach and help us meet the diverse and evolving needs of our growing customer base."
Certain statements in this press release may constitute "forward-looking" information that involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such information includes, without limitation, statements with respect to: WesternOne's ability to expand service and product offerings to customers, activity in the share oil and gas sectors in the Southern and Midwest States in the US and WesternOne's ability to serve customers in those markets, and WesternOne's future plans for business expansion. Actual events or results may differ materially.
Forward-looking information contained in this press release is based on certain key expectations and assumptions made by WesternOne, including, without limitation: the outlook of WesternOne's business and the economy in Western Canada and the US, the supply and demand for WesternOne's products and services, stability in oil and gas activity in Western Canada and the US, and management's assessment of future plans and operations. Although the forward-looking information contained in this press release is based upon what the WesternOne's management believes to be reasonable assumptions, WesternOne cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release. Such information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, and a description of these factors can be found under "Risk Factors" in WesternOne's Annual Information Form dated March 28, 2014 and Management's Discussion and Analysis dated August 7, 2014, which are available on SEDAR (www.sedar.com).
The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to WesternOne. The forward-looking information is made as of the date of this press release and WesternOne assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.
WesternOne seeks to acquire and grow businesses in the construction and infrastructure services sectors in order to generate stable dividends to its shareholders and to achieve capital appreciation.Additional information relating to WesternOne and other public filings, is available on SEDAR at www.sedar.com or on WesternOne's website at www.weq.ca.
Toronto Stock Exchange: WEQ, WEQ.DB and WEQ.DB.C
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SOURCE: WesternOne Inc.
For further information: Andrew Greig, Manager of Investor Relations, WesternOne Inc., Suite 910, 925 West Georgia Street, Vancouver, BC V6C 3L2, Phone: (604) 678-4042, E-mail: [email protected]