EDMONTON, Alberta —Canadian Equipment Rental Fund has reached an agreement to acquire 100 percent of the shares of TRAC Energy Services Ltd., a private oilfield equipment rental company based in Nisku, Alberta, with offices in Calgary, for CDN $17.8 million (about U.S. $18.1 million). The final price will be subject to working capital and other normal closing adjustments, payable by cash in the amount of $11.7 million and by the issuance of about 2 million common shares in the capital of CERF Inc. at $3 per common share.
As previously reported in RER, CERF signed a non-binding letter of intent to acquire TRAC in August. TRAC currently generates about CDN $4.5 million in annual EBITDA. The transaction is expected to close this month, subject to approval by the TSX Venture Exchange, other regulatory approvals and customary closing conditions. The existing TRAC management team, Cameron Miller and Travis Porter, will continue as president and vice president of sales and marketing of TRAC and will continue to manage and grow the company, which will be CERF’s new business unit.
“We are excited to have a successful oilfield rental company join the CERF group of companies,” Wayne Wadley, president of CERF Inc. said. “We look forward to being able to participate more directly in Alberta’s strong oil and gas industry. TRAC’s management and staff have demonstrated impressive growth over the past several years and that is a testament to their commitment to supplying a quality rental fleet with a high level of service. We expect that to continue within CERF. We are also delighted that Cameron and Travis will remain in leadership roles with TRAC and continue to guide its strategic direction. TRAC supplies much-needed drilling and service rig-related equipment to both large and smaller oil and gas production companies in Alberta. They have a modern diverse fleet that we believe will continue to be in demand. We look forward to continuing to enable TRAC to grow within their existing customer base and to providing more equipment to new customers requiring their fleet.”
CERF is a Canadian public corporation engaged in the rental and service of industrial and construction equipment and waste management and environmental services, trading on the TSX Venture Exchange under the symbol CFL. CERF is parent company to Edmonton, Alberta-based 4-Way Equipment Rental, No. 94 on the.