Business
Horizon North and Dexterra Sign Definitive Agreement to Create Leading Canadian Support Services Company
Horizon North and Dexterra Sign Definitive Agreement to Create Leading Canadian Support Se...
About this update from Dexterra Group, Inc.
[{"type":"text","content":"\n\n\n\nHorizon North and Dexterra Sign Definitive Agreement to Create Leading Canadian Support Services Company\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, March 9, 2020\n\n\n\n(All financial figures are approximate and in Canadian dollars unless otherwise noted.)\n CALGARY, March 9, 2020 /CNW/ - \n\n \n \n \n \n \n \n\n \nHighlights\nCombination creates a Pan-Canadian champion diversified across end markets with an objective to grow to over $1 billion in revenue and $100 million in EBITDA The new company will have size and scale with pro forma revenues of over $700 million and over $45 million of EBITDA in 2019 Highly complementary stable facilities management and modular services businesses with excellent growth prospects Creates a leading national workforce accommodations service provider Significant cost savings and cross selling opportunities 100% share transaction, with Horizon North shareholders to own 51% and Fairfax Financial to hold 49% Stronger balance sheet with pro forma leverage of less than 2.0x net debt / 2020 calendar year EBITDA as Dexterra expects to have no debt on closing of the transaction Fairfax Financial supports payment of an annual dividend of 8 cents, 2 cents payable quarterly, following the close of the transactionHorizon North Logistics Inc. TSX: HNL (\"Horizon North\" or the \"Company\") and 10647802 Canada Limited, operating as Dexterra Integrated Facilities Management (\"Dexterra\"), are pleased to announce that they have agreed to combine to create a leading Canadian support services company (the \"Transaction\").\nUnder the terms of a share purchase agreement entered into on the date hereof, the Transaction was unanimously approved by both Horizon North and Dexterra's boards of directors, as well as Dexterra's sole shareholder, a wholly-owned subsidiary of Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) (\"Fairfax Financial\"). Horizon North will acquire all of the outstanding shares of Dexterra in exchange for Horizon North issuing Fairfax Financial such number o...