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Aveda Transportation & Energy Services Updates Details of Acquisition of Competitor Hodges Trucking - Video News Alert on InvestmentPitch.com
Vancouver, British Columbia--(Newsfile Corp. - June 19, 2015) - Aveda Transportation and Energ...
About this update from Aventis Energy Inc
[{"type":"text","content":"Aveda Transportation & Energy Services Updates Details of Acquisition of Competitor Hodges Trucking - Video News Alert on InvestmentPitch.comVancouver, British Columbia--(Newsfile Corp. - June 19, 2015) - Aveda Transportation and Energy Services (TSXV: AVE) recently announced the acquisition of Hodges Trucking, a subsidiary of NYSE listed Seventy Seven Energy. Aveda, already a leading provider of oilfield hauling services and equipment rentals to the energy industry, increased its footprint in this industry, through the acquisition of its largest competitor in the United States. InvestmentPitch.com has produced a \"video news alert\" which provides a brief overview of the transaction. If this link is not enabled, please visit www.InvestmentPitch.com and enter \"Aveda\" in the search box. If you cannot view the video above, please visit: http://www.investmentpitch.com/video/0_t70yl6so/Aveda-Transportation-and-Energy-Services-TSXV-AVE-Update-on-the-acquisition-of-Hodges-TruckingThe move by Seventy Seven Energy to sell Hodges Trucking, a non-core asset, allowed Aveda to close an acquisition that will be talked about in the oil patch for some time. At the closing, Aveda paid US$42 million, with US$15 million financed through Aveda's existing senior credit facility, and the balance of US$27 million financed by the seller with a 5 year note bearing interest at 9%, with no requirement for early repayment. The note is secured by a 2nd lien on Aveda's fixed assets and accounts receivable. Through the acquisition, Aveda acquired US$17.5 million of working capital and approximately 900 pieces of rig moving and heavy haul equipment. Subsequent to the closing, Aveda sold approximately 350 pieces of Hodges' non-oilfield equipment for approximately US$22 million, recovering more than 52% of its initial investment. This equipment sale will generate approximately US$20.8 million in cash with US$1.25 million placed in escrow, to be released over the next 12 months subject to meeting certain milestones. Aveda expects to incur approximately US$5.0 to US$6.0 million in acquisition related costs.David Werklund, Executive Chairman of Aveda stated: \"The economics of this acquisition are as good as many that I have seen in my long career.\"Aveda retained approximately 50 pieces of non-oilfield equipment, including 3 cranes, 26 service vehicles and 7 lo...