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CERF to aquire TRAC Energy for $17.81-million
2012-10-01 13:45 ET - News Release
CERF INCORPORATED ANNOUNCES AGREEMENT TO PURCHASE TRAC ENERGY SERVICES LTD.
CERF Inc. has entered into an agreement to purchase 100 per cent of the issued and outstanding shares of TRAC Energy Services Ltd., a private oil field equipment rental company based in Nisku, Alta., which also has offices in Calgary. The purchase price for the acquisition is $17,813,300 subject to working capital and other normal closing adjustments, payable by cash in the amount of $11,730,113 and by the issuance of 2,027,729 common shares in the capital of CERF at a deemed price of $3 per common share. TRAC currently generates about $4.5-million in EBITDA (earnings before interest, taxes, depreciation and amortization). The transaction, which is expected to close in early October, 2012, is subject to approval by the TSX Venture Exchange and to other regulatory approvals and is subject to other customary closing conditions. The existing management team of TRAC, namely, Cameron Miller and Travis Porter, will continue as president and vice-president, sales and marketing, respectively, of TRAC and thereby manage and grow CERF's new business unit. AltaCorp Capital Inc. is acting as financial adviser to TRAC.
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