Canadian Equipment Rentals Corp. announced it has entered into an agreement with GFL Environmental Inc. to sell 100 percent of its subsidiary MCL Waste Systems & Environmental for $12 million in cash.
The transaction, expected to close around the beginning of December is subject to approval by the TSX Venture Exchange and customary closing conditions. PillarFour Capital Inc. is acting as exclusive financial advisor to CERC.
“This transaction advances our strategy of focusing on our core rentals divisions,” said CERC president Austin Fraser. “The cash proceeds from the sale will be used to reduce bank indebtedness and provide us with greater financial flexibility through the prolonged oil-and-gas downturn. MCL is a solid business and we are pleased that our employees will be joining a best-in-class environmental services provider in GFL.”
Canadian Equipment Rentals Corp. is a Canadian public corporation with three operating divisions: Energy Services, General Rentals and Waste Management. The company has decades of experience in general rentals through its Edmonton, Alberta-based 4-Way Equipment Rentals. It has branches into waste management and energy rental services in recent years. Formerly known as Canadian Equipment Rental Fund, CERC is No. 74 on the RER 100.
