Enterprise Group, Canadian consolidator of construction services companies in the energy, utility and transportation infrastructure industries, has signed a letter of intent to acquire a privately owned oilfield site services rental company based in Fort St. John, B.C., Canada. The purchase price will be based on the acquisition target’s most recent financial statements, which are being audited.
The targeted company has, during the past 10 years, developed a full-service oilfield site infrastructure company that fulfills multiple rental needs for a variety of oil-and-gas customers, and currently has about 350 machines in its rental fleet. The owner has agreed to sign a five-year management agreement with Enterprise, which expects to complete the transaction in September.
“The acquisition will further accelerate Enterprise’s emergence as a key player within the oilfield services industry,” president and CEO Leonard Jaroszuk said. “The acquisition target is in many ways similar to Hart Oilfield Services, which we acquired in January of this year. The two companies offer similar services, and we anticipate that the synergies between the two businesses will result in the creation of multiple cost-saving efficiencies. Furthermore, the acquisition target has relationships with several customers that Hart does not service.
“We strongly believe that the equipment rental market offers significant potential. Much of this potential centers around the Fort St. John region, a critical area in the development of Western Canada’s LNG industry. Our acquisition of Hart has already demonstrated its value, both in the company’s contribution to Enterprise’s first quarter results and its recently announced major contract with Canada’s largest natural gas producer.”
Enterprise Group is based in St. Albert, Alberta. For more on its previous acquisition, read: http://rermag.com/headline-news/rental-fuels-enterprise-group-s-hot-first-quarter