Zedi signs deal to buy Southern Flow They are doing a great job while waiting that Gas get back on track…
Zedi signs deal to buy Southern Flow
2011-01-05 08:22 ET - News Release
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Ms. Debra Deane reportsZEDI INC. ANNOUNCES ACQUISITION OF SOUTHERN FLOW COMPANIES, INC.
Zedi Inc. has entered into a purchase and sale agreement for the acquisition of Southern Flow Companies Inc., in an all-cash deal. Established in 1953, Southern Flow is one of the largest independent service and supply companies in the United States.
Zedi will be acquiring 100 per cent of the common shares of Southern Flow from PowerSecure International Inc. The transaction is expected to close in January, 2011, with an effective date of Jan. 1, 2011. The purchase price is $15.55-million (U.S.), payable in cash at closing. The acquisition includes positive working capital in Southern Flow of $3,727,000. Approximately $10-million (U.S.) of the purchase price will be financed out of cash on hand, with the $5.55-million (U.S.) balance of the purchase price being financed from a term debt facility with Zedi's primary banker.
"The acquisition of Southern Flow is a great fit with Zedi's current operations, bringing over 57 years of experience in both onshore and offshore measurement services. The management team, headquartered in Lafayette, L.A., brings a wealth of expertise in running a distributed organization having 12 locations across six states, providing Zedi access to all the major oil and gas producing regions of the U.S. With an office located in Pennsylvania, it will give us the ability to participate in the Marcellus play. The majority of locations are in the southern U.S., providing the benefit of a stable revenue base that is built on a foundation of traditional oil and gas production. Southern Flow brings a suite of services that can be added to our existing offerings, helping diversify our revenue sources even further," said Matthew Heffernan, president and chief executive officer of Zedi.
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