Aveda Transportation and Energy Services, a leading provider of oilfield hauling services and equipment rentals to the energy industry, acquired the shares of Lon Dan Enterprises Ltd., which carries on business as Belair Rentals, based in Edson, Alberta. Aveda is acquiring 23 well-site shacks, 22 light towers, 43 pieces of safety matting, 19 rig mats, 16 environmental fuel tanks, various other rental assets and working capital for an initial purchase price of CDN $4.0 million ($3.5 million in cash and $0.5 million in common shares of Aveda). An additional $0.5 million to $1.5 million in cash consideration is payable if the acquired business achieves certain EBITDA generation targets during the one-year period following closing. Additionally, the final purchase price may be subject to a working capital adjustment."Aveda continues to consolidate complementary rental assets in active regions that offer growth potential over the near to mid-term and beyond," said Kevin Roycraft, president and CEO of Aveda. "Acquiring Belair Rentals will allow us to raise our profile and access a range of conventional and unconventional wellsites in the Cardium formation and in the Montney and Duvernay shales. It will also allow us to improve the utilization of existing assets that can be redeployed to regions with greater demand, while acquiring higher EBITDA margin products not part of our current oilfield rentals offering." "Improving utilization of existing rental equipment while also acquiring higher EBITDA margin assets should allow us to drive overall EBITDA growth in our rentals business," said Bharat Mahajan, vice president, finance and chief financial officer of Aveda. "Our team continues to take a very disciplined view with respect to acquisitions and how they will contribute to our success going forward. We believe we were able to acquire these assets at an attractive valuation, especially if once they are integrated into our business can drive additional synergies." Existing Belair management has joined the Aveda team to support relationship continuity with key customers and add further rentals expertise to the organization. "We are thrilled to be joining a dynamic and growing company like Aveda," said Brian Pillage, former president of Belair Rentals. "The transaction improves both the diversity and geographic reach of our product offering to a larger, combined customer base." Pursuant to the terms of the acquisition, Aveda issued 137,741 common shares at a price of $3.63 per share, which was calculated using a five-day weighted average trading price on the TSX Venture Exchange prior to closing. Aveda provides specialized transportation services and equipment required for the exploration, development and production of petroleum resources in the Western Canadian Sedimentary Basin and in the United States principally in and around the states of Texas and Pennsylvania. Aveda's rental operations include the rental of tanks, mats, pickers, light towers and other equipment necessary for oilfield operations. Aveda was incorporated in 1994 as a private company to serve the oil and gas industry. It has major operations in Calgary, Slave Lake, Leduc and Sylvan Lake, Alberta; Mineral Wells, Pleasanton and Midland, Texas; Williamsport, Pa; and Buckhannon, W.V.
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