Energy Stock News:
Enterprise Group (TSX: $E.TO) Completes Sale of Calgary Tunnelling &
Horizontal Augering
St.
Albert, AB - March 26, 2018 (Investorideas.com Newswire) Enterprise Group,
Inc. ("Company" or "Enterprise") (TSX:E)
a consolidator of services to the energy sector; focused primarily on
specialized equipment rental, announcing today that it has closed the
previously reported sale of the assets of its trenchless solutions business
unit, Calgary Tunnelling & Horizontal Augering (“CTHA”), to a private arm's
length purchaser.
Acquired
in June 2013 for $12.0 million, over the course CTHA generated approximately
$60 million in profitable revenue to Enterprise.
Gross
proceeds of the transaction are $20.6 million pursuant to post-closing working
capital adjustments. All proceeds from this transaction will be deployed
towards reducing Enterprise's debt, placing the Company in the enviable
position of being net debt free.
Enterprise's
corporate structure will allow the utilization of tax losses to offset the gain
on this transaction.
In
a news release dated March 15th that announced full year results to December
31, 2017 the Company provided a breakdown adjusted for goodwill and deferred
taxes, assets in excess of total debt of $51 million or $0.92 per share. The
CTHA transaction improves this position, increasing it to $56 million or $1.01
per share.
Management's
execution of its growth plan bodes extremely well for the future of Enterprise
as well as its shareholders. Management intends to build and grow its three
remaining divisions and acquire additional equipment rental businesses.
There
are a number of acquisition targets currently being evaluated by the Company.
The
paydown of the PNC credit facility will free up the $25 million line for future
acquisition purposes. Management has also been offered a further $15 million
line from a prominent U.S. based non-bank lender for acquisition purposes.
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For questions or additional
information, please contact:
Leonard
Jaroszuk, President & CEO, or
Desmond O'Kell, Senior Vice-President
780-418-4400
contact@enterprisegrp.ca
Desmond O'Kell, Senior Vice-President
780-418-4400
contact@enterprisegrp.ca
Forward Looking
Information
Certain
statements contained in this news release constitute forward-looking
information. These statements relate to future events or the Company's future
performance. The use of any of the words "could", "expect",
"believe", "will", "projected", "estimated"
and similar expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking information and are
based on the Company's current belief or assumptions as to the outcome and
timing of such future events. In particular, this news release contains forward
looking information relating to the proposed sale of CTHA, the terms and timing
of such transaction and the use of proceeds therefrom. These forward-looking
statements are based on assumptions and are subject to numerous risks and
uncertainties, certain of which are beyond the Company's control, including the
negotiation of a definitive agreement, obtaining all necessary third party
consents and approvals, satisfaction or waiver of closing conditions, general
economic conditions, industry conditions and competitive factors. There is no
assurance that the proposed transaction will be completed on the terms set
forth herein or at all. Actual future results may differ materially. The
Company's Annual Information Form and other documents filed with securities
regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the
risks, material assumptions and other factors that could influence actual
results and which are incorporated herein by reference. The Company disclaims
any intention or obligation to publicly update or revise any forward-looking
information, whether as a result of new information, future events or
otherwise, except as may be expressly required by applicable securities laws.
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