CERF Inc., parent company of Edmonton, Alberta, Canada equipment rental company 4-Way Equipment Rental has acquired the business and assets of Empire Tool, a Calgary, Alberta-based, privately owned oilfield service and rental business. CERF made the acquisition through its subsidiary TRAC Energy Services Ltd. The purchase price was approximately CDN $9.3 million (about U.S. $8.6 million).
The Empire assets will immediately enhance TRAC’s capability to provide new and existing customers with equipment used in directional drilling applications including: specialty and heavyweight drill pipe, drill collars and related handling equipment. Empire’s assets operate primarily in the deep horizontal plays of Western Alberta and Northeast British Columbia.
Empire generated about $4.2 million in revenue and $2.8 million in adjusted and normalized EBITDA in the year ended March 31, and is expected to be immediately accretive to CERF shareholders.
“The acquisition of Empire complements TRAC’s oilfield service capability within Western Canada, and enhances our overall earnings ability,” said Wayne Wadley, president of CERF. “We are excited to welcome Empire’s management team to TRAC, who will be instrumental in integrating Empire’s assets, sales capacity, and oilfield capabilities into our well-established operating model.”