CERF Incorporated Acquires the Assets of Empire Tool Inc.
29 May 2014 - 5:58AM
Marketwired
CERF Incorporated Acquires the Assets of Empire Tool Inc.
TRAC Energy Services Ltd., a wholly owned subsidiary of CERF
Incorporated, Significantly Expands its Oilfield Services
Portfolio, Adding Both Size and Scope to its Rental Business
CALGARY, ALBERTA--(Marketwired - May 28, 2014) - CERF
Incorporated ("CERF" or the "Company") (TSX-VENTURE:CFL) is pleased
to announce that it has purchased the business and assets (the
"Acquisition") of Empire Tool Inc. ("Empire") a Calgary-based,
privately owned oilfield service and rental business through its
subsidiary TRAC Energy Services Ltd. ("TRAC"). The purchase price
for the Acquisition was approximately $9.3 million.
"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."
The Empire assets will immediately enhance TRAC's capability to
provide new and existing customers with more equipment used in
directional drilling applications including: specialty and heavy
weight 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 approximately $4.2 million in revenue and $2.8
million in adjusted and normalized EBITDA in the year ending March
31, 2014, and is expected to be immediately accretive to CERF
shareholders. The Acquisition is payable by cash in the amount of
$6.1 million, subject to a one year, $2 million hold back provision
and through the issuance of $3.2 million in CERF common shares.
Raymond James Ltd. acted as financial advisor to Empire.
About CERF Incorporated
CERF Inc. is a Canadian public corporation engaged in the
rental, sale and service of industrial and construction equipment
and waste management and environmental services. The Equipment
Rental Segment includes the rental of residential, commercial and
industrial construction-related equipment, including sales and
service of equipment. It also includes the rental and sale of
equipment to the drilling and service sectors of the oil and
natural gas industry. The Waste Management Segment consists of
complete waste facility management (six landfill sites in central
Alberta) including waste facility design and construction services,
recycling management and collection services, and consulting
services. The Waste Management Segment also consists of waste
removal and disposal from commercial, industrial and residential
customers. CERF Incorporated trades on the TSX Venture Exchange
under the symbol "CFL".
Advisory Regarding Forward-Looking Information
This press release contains forward-looking information. All
statements, other than those of historical fact, which address
activities, events, outcomes, results or developments that CERF
anticipates or expects may, or will occur in the future (in whole
or in part) should be considered forward-looking information. In
particular, this press release refers to CERF's and TRAC's
anticipated benefits of the Acquisition, integration of the
acquired assets with TRAC's business, the enhancement of TRAC's
capability to serve new and existing customers, and the expectation
the transaction will be immediately accretive to CERF shareholders,
all of which are forward-looking information. This forward-looking
information is based upon on various assumptions, including
assumptions regarding the integration of the acquired assets.
Readers are cautioned that there is no assurance that the matters
referenced herein will proceed as set forth herein. Many factors
could cause the performance or achievement by CERF and TRAC to be
materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking information. These factors include the failure to
achieve the anticipated benefits of the Acquisition. Readers are
cautioned that the foregoing list of factors is not exhaustive. The
forward-looking information contained in this press release is
expressly qualified by this cautionary statement. CERF is not under
any duty to update any of the forward-looking information after the
date of this press release or to conform such statements to actual
results or to changes in CERF's expectations and CERF disclaims any
intent or obligation to update publicly any forward-looking
information, whether as a result of new information, future events
or results or otherwise, other than as required by applicable
securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
CERF IncorporatedWayne WadleyPresident and CEO(403)
850-4095wwadley@cerfcorp.comCERF IncorporatedKen StephensVice
President Finance & CFO(780) 410-2998 ext
371kstephens@cerfcorp.com
CERF Incorporated (TSXV:CFL)
Historical Stock Chart
From May 2024 to Jun 2024
CERF Incorporated (TSXV:CFL)
Historical Stock Chart
From Jun 2023 to Jun 2024