SYLVAN LAKE, ALBERTA--(Marketwired - Aug. 17, 2015) - Lonestar West Inc. (TSX VENTURE:LSI) ("Lonestar" or the "Company") a premier provider of Hydrovac and Vacuum truck services is pleased to announce a strategic acquisition of certain assets of Hewitt Specialty Services, LLC ("Hewitt"), an arm's length hydrovac service company, for total consideration of $1.3 million USD.
Hewitt started operations in 2010 and is currently operating a fleet of 5 Hydrovac trucks and 1 dry vacuum truck in Cushing, Oklahoma. The acquisition is expected to add approximately $2.9 million USD in annual revenues and increases Lonestar's operating fleet from 155 units to 161 units.
"The Hewitt acquisition is consistent with our corporate growth strategy. The addition of a base that services the Cushing, Oklahoma region will complement our existing base in Elk City Oklahoma and expand our presence in the South Central United States" said James Horvath, CEO of Lonestar. "Lonestar would also like to welcome Brad Hewitt to the Company. Mr. Hewitt's experience in the Cushing area will be a valuable addition to our senior management team.
In consideration of the acquisition of certain assets of Hewitt, the Corporation cancelled accounts receivable due from Hewitt of approximately $500,000 USD and issued unsecured promissory notes (the "Notes") that mature over a five year period totaling $500,000 USD. The Notes are non-interest bearing and subject to certain performance thresholds being achieved. In addition, 299,496 common shares of the Company will be issued at a price of $1.31 CND per share for a total of $300,000 USD in the aggregate.
About Lonestar West
Based in Sylvan Lake, Alberta, Lonestar West Inc. (www.lonestarwest.com) operates a fleet of 154 HVAC and vacuum trucks throughout Canada and the United States. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.
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