Business
Enterprise Group, Inc. announces acquisition of Hart Oilfield Rentals Ltd. and concurrent financing
Accretive acquisition offers both growth potential and ideal complement to Enterprise's eq...
About this update from Enterprise Group, Inc.
[{"type":"text","content":"\n\n\nAccretive acquisition offers both growth potential and ideal complement\n to Enterprise's equipment rental division\n\n\n/NOT FOR RELEASE IN THE UNITED STATES OR DISSEMINATION OF UNITED STATES\n NEWS WIRE SERVICES/\n\n\nST. ALBERT, AB, Dec. 4, 2013 /CNW/ - Enterprise Group, Inc.\n (\"Enterprise,\" or the \"Company\") (TSX:E) is pleased to announce that it\n has entered into an agreement (the \"Acquisition Agreement\") to acquire\n Hart Oilfield Rentals Ltd. (\"Hart\"), one of Western Canada's most\n highly regarded oilfield service providers, for a purchase price of\n $22.6 million, which includes $2.0 million of working capital (the\n \"Acquisition\"). The purchase price will be satisfied through a\n combination of $1.0 million of common shares (\"Common Shares\") of\n Enterprise and $21.6 million in cash.\n\n\nHIGHLIGHTS\n\n\n\nComplementary acquisition with significant customer overlap\n\n\nExpands the Company's specialized rental equipment segment and enhances\n growth potential\n\n\nHart boasts an attractive track record of organic growth - realized\n Compound Annual Growth Rates (\"CAGR\") on revenue of 22% and EBITDAS of\n 37%, over the last four years\n\n\nPurchase price represents a trailing EBITDAS multiple of 3.1x (2.9x\n without working capital), based on Hart's fiscal 2013 EBITDAS of $7.2\n million, and a trailing revenue multiple of approximately 1.0x, based\n on Hart's fiscal 2013 revenue of $22.7 million \n\n\nPurchase price is equivalent to 1.1x the fair market value of Hart's\n equipment, based upon an independent appraisal completed in May of 2013\n\n\nIn order to finance the cost of the Acquisition, the Company intends to\n conduct a prospectus offering of subscription receipts for gross\n proceeds of $15 million\n\n\nPurchase will also be facilitated by recent $15 million increase in the\n Company's credit facility (See press release dated November 20, 2013)\n\n\n\n\n\n\nHart is a full service oilfield site infrastructure company that\n provides both site services and equipment rentals to its oil and gas\n customers, all of whom operate within the Western Canadian Sedimentary\n Basin. Hart's equipment fleet consists of approximately 1,500 owned\n pieces and an additional 500 pieces that have been rented in order to\n fulfill demand. This fleet provides on-site support for oilfield\n drilling and comple...