Business
TerraVest Capital Inc. To Acquire NWP Industries Inc.
VEGREVILLE, AB and TORONTO , Aug. 5, 2014 /CNW/ - TerraVest Capital Inc. (TSX:TVK) (th...
About this update from Terravest Industries, Inc.
[{"type":"text","content":"\n\n\nVEGREVILLE, AB and TORONTO, Aug. 5, 2014 /CNW/ - TerraVest Capital Inc.\n (TSX:TVK) (the \"Company\" or \"TerraVest\") announced today that a wholly owned subsidiary of the Company has\n entered into an agreement to acquire certain assets and liabilities of\n NWP Industries Inc. (\"NWP \"), a privately-owned Innisfail, Alberta based company primarily focused\n on manufacturing high quality oil & gas processing equipment for\n customers in Western Canada.\n\n\nThe purchase price paid for NWP will be $12.6 million; consisting of\n $10.0 million in cash and $2.6 million in the issuance of TerraVest\n common shares. The TerraVest common shares will be subject to a 3 year\n lock-up agreement (with the release of 1/3 of the shares on each\n anniversary of the closing) and held with the third generation\n President of NWP, Mitch DeBelser. NWP will continue to operate as NWP\n Industries LP.\n\n\nThe purchase price represents approximately 4.25x NWP's EBITDA for the\n most recent fiscal year.\n\n\nTerraVest will use a portion of the cash proceeds from its recent equity\n offering to fund the acquisition.\n\n\nMr. DeBelser and existing management will continue on at NWP Industries\n LP and play a pivotal role in growing the company.\n\n\nCharles Pellerin, Executive Chairman of TerraVest, welcomes the\n management team and employees of NWP and looks forward to their\n continuing commitment to the business and its customers.\n\n\n\"We told our shareholders that we intended to grow TerraVest in our\n existing lines of business and leverage our management expertise to\n enhance growth opportunities\", said Mr. Pellerin. \"Today is another\n step in that direction\".\n\n\n\"NWP and RJV Gas Field Services offer some of the best oil and gas\n processing equipment in the country. Their products are similar in\n nature and the companies will now work together to complement each\n other's strengths\".\n\n\nDebi DeBelser, second generation President of NWP said, \"NWP started\n over 50 years ago with my father Mike Chwelos. I would like to thank\n our employees for their dedication over the years and the significant\n contribution they have made to NWP's achievements. I look forward to\n seeing NWP reach new heights under the guidance of Mitch DeBelser and\n with the assistance of TerraVest\".\n\n\nDale Laniuk, CEO of TerraVest said, \"Ha...