WesternOne Equity Income Fund, a fast-growing rental company based in Vancouver, B.C., Canada, has completed its acquisition of On-Site Equipment, an aerial and material-handling equipment rental, sales, service and transport business based in Calgary, Alberta. On-site has branches in Lethbridge, Red Deer and Edmonton, Alberta.
The purchase price was CA $13.5 million (about U.S. $13.47 million), subject to post-closing adjustments. WesternOne Equity paid for the acquisition using cash proceeds from a CA$27.6 million public offering of convertible unsecured subordinated debentures, which was announced Feb. 26. WesternOne expects the transaction to be immediately accretive to WesternOne Equity unitholders, and will reduce the company’s payout ratio.
On-Site Equipment earned about CA$3.15 million EBITDA for the 12 months ended Dec. 31, based on unaudited financial information.
“On-Site Equipment is a major operator in the central and southern Alberta aerial and material-handling equipment rentals industry,” said WesternOne CEO Darren Latoski. “It is an excellent addition to our existing businesses operating in the construction heat and propane distribution segments in that region, as it expands our product offerings through our network of operations. The acquisition also adds strength to our existing aerial, material-handling and general rentals operations in British Columbia, and grows our aerial and material-handling equipment fleet to over 1,000 units with 14 operating locations across Western Canada.”
On-Site was recently named a dealer for Skyjack’s VR telehandlers.
WesternOne Equity Income Fund has made more than a half dozen acquisitions in western Canada in recent years and is still looking for acquisition opportunities in British Columbia, Alberta and Sasketchewan. The company is No. 81 on the RER 100.
