2009-08-12-2007-07-01-2007-07-01

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
94MM
Description

Acquired four private, Alberta-based companies providing road-construction, gravel-crushing and log-hauling, and one private British Columbia-based company providing lease and road-building services.

Petrowest Energy Services Trust, Calgary, (Toronto: PRW-UN) has closed its acquisition of five private road-construction, gravel-crushing and log-hauling businesses in Alberta and British Columbia for C$50.4 million in cash, C$33.5 million in trust units and C$10.3 million in assumed debt in a deal valued at C$94.2 million. The companies includes Grande Prairie, Alberta-based Cutbank Trucking Ltd. and Cutbank Transport Ltd., operated as one business, Worsley, Alberta-based Jim Moffatt Construction Ltd., in Fort St. John, British Columbia-based Quigley Contracting Ltd, Peace River, Alberta-based Rick's Mechanical Services Ltd. and Evansburg, Alberta-based Tri-Dave Gravel Sales Ltd. Petrowest also acquired the road-construction equipment of Woodland Cree Industries Ltd., a subsidiary of the Cadotte Lake, Alberta-based Woodland Cree First Nations tribe. Cutbank Trucking and Cutbank Transportation provide log-hauling, log-loading and gravel services in the Grande Prairie area. Jim Moffatt Construction provides lease and road-building services in northern Alberta. The assets will expand Petrowest's presence north to Rainbow Lake and High Level. Rick's Mechanical Services provides lease and road-building services in the Peace River area. Quigley Contracting provides lease and road-building services in the Fort St. John area. The assets will expand Petrowest's presence to the northern regions of British Columbia. Tri-Dave Gravel provides gravel-crushing services throughout Alberta. The assets will provide additional capacity to Petrowest's crushing. Petrowest president and chief executive Kenneth N. Drysdale says, "Each of the companies to be acquired is well established with a significant operating history, experienced and proven management and a business that will provide synergies with Petrowest's existing competencies, clients, industries, work activities and geographic region. Not only do these acquisitions bring an accretive financial contribution, but they strengthen Petrowest in our target geographic region." Petrowest funded the deal with a C$120-million line of credit.