Vancouver, B.C., Canada-based WesternOne Equity Income fund, last week said it signed a letter of intent to acquire 100 percent of the assets of a rental, sales and transport business specializing in aerial and material-handling equipment. The company, which WesternOne did not name, is an independently owned firm based in Calgary, Alberta, with operations covering central and southern Alberta.
The letter of intent says WesternOne Equity will pay about CA $13.5 million (about U.S. $12.6 million) for the company. The transaction will be financed using existing cash and debt and is expected to close by March, subject to due diligence.
The company to be acquired has a fleet of more than 450 aerial and material-handling machines and is estimated by its management to earn about CA $3.15 million in EBITDA. The acquisition is at an implied transaction multiple of 4.3 times EBITDA.
“WesternOne Equity was able to source this off-market transaction at what our management believes is an attractive valuation with immediate accretion to our unitholders,” said Darren Latoski, CEO of WesternOne Equity. “This transaction would allow us to enhance our market share in the equipment rental market in Alberta, through expanding our network of operations developed from previous acquisitions and organic growth.”
WesternOne Equity fund has acquired about a half dozen companies in the past three years. It is No. 81 on the RER 100.
