ADDISON, Texas, June 06, 2018 (GLOBE NEWSWIRE) -- Daseke, Inc. (DSKE) (DSKEW), the largest owner of flatbed and specialized transportation and logistics solutions in North America, has completed the acquisition of Aveda Transportation and Energy Services (AVE.V), one of the largest and fastest-growing oil rig moving companies in North America.
Under terms of the agreement, Daseke paid C$0.90 (US$0.70) per share, or approximately $42.6 million, plus the payoff of $54.8 million in Aveda debt, net of cash. The consideration was comprised of approximately $27.3 million in cash and $15.3 million (1,612,979 shares) in Daseke stock. Equity represented approximately 16% of the total consideration. The transaction was financed with cash on hand, and all figures have been translated from Canadian dollars into U.S. dollars at an exchange rate of 0.78.
Aveda is one of the largest providers of specialized transportation services and equipment required for the exploration, development and production of petroleum resources in the U.S. and Canada. Its services focus on the specialized hauling of large oil rigs and worksite equipment.
“Daseke's two core principles are investing in great people and building an organization of scale,” said Don Daseke, chairman and CEO. “Aveda strongly builds upon these core principles and is an exceptional fit for our platform. Beyond the strategic rationale, this transaction also presents numerous synergies not contemplated in the purchase price. Aveda outsources up to 35% of its long-distance rig movers to other carriers, and we have the equipment to capture some of this revenue through our various operating companies. In addition to cross-selling, we have also identified other benefits of scale in the way of purchasing, fuel and insurance.”
Aveda President and CEO Ronnie Witherspoon stated: “Joining the Daseke team makes our company stronger than ever. The benefits of scale will help us better serve our customers and is already empowering our employee base. Like Daseke, we believe in a people-first culture. A high-quality, passionate employee base is key to the execution of our business plan. We have that culture and so does Daseke, making this combination a perfect match and an exciting new chapter for our company.”
Aveda’s current terminal locations cover almost 80% of the potential North American market, and nearly 90% of its revenue is diversified across all seven of the major U.S. oil basins. Aveda owns approximately 1,300 pieces of equipment, and a November 2017 outside equipment appraisal valued its machinery and equipment at approximately C$114 million (US$90 million).
In 2017, Aveda generated C$199.6 million (US$155.7 million) in revenue, up 172% from C$73.3 million (US$57.2 million) in 2016. Adjusted EBITDA in 2017 improved significantly to C$15.9 million (US$12.4 million) versus an adjusted EBITDA loss of C$6.9 million in 2016 (US$(5.4) million).
In the first quarter of 2018, Aveda generated C$60.2 million (US$47.1 million) in revenue, up 47% from C$41.0 million (US$32.0 million) in the first quarter of 2017. Adjusted EBITDA improved 72% to C$4.4 million (US$3.4 million) versus C$2.6 million in in the first quarter of 2017 (US$2.0 million).
These figures are based on Aveda’s audited consolidated financial statements as of and for the years ended December 31, 2017 and 2016, and quarters ended March 31, 2018 and 2017, prepared in C$ and in accordance with International Financial Reporting Standards and filed on Canadian System for Electronic Document analysis and Retrieval (SEDAR) on April 16, 2018 and May 29, 2018, respectively. See Aveda’s MD&A and company filings for more information.
Daseke continued, “Aveda brings us a blue-chip customer base and a fast-growing, specialized business, supported by a high-quality, culturally-aligned employee base. They are an industry leader that continues to take market share, and we expect joining Daseke will enable them to fuel their continued outperformance. In fact, this aligns with our stated goal of entering specialized niches where we can utilize our scale to become a dominate player.”