ST. ALBERT, ALBERTA--(Marketwire - Sept. 5, 2012) - Enterprise Group, Inc. ("Enterprise") (TSX:E) is pleased to announce the signing of a letter of intent to purchase a highly successful and profitable specialized equipment rental company (the "private company") with operations based in the Edmonton, Alberta area.
In the trailing twelve months ending March 2012 the private company generated sales revenue of $4.7 million resulting in an EBITDA in excess of $2.7 million and a net profit of over $2.0 million.
Founded in 1998, the Company is an industry leader in providing flameless heat technology to the broad based construction and oil & gas industries in Western Canada. The private company rents flameless heaters ranging in heat output from 375,000 British Thermal Units ("BTU's") to 3,000,000 BTU's. Enterprise's strategy is to continue to grow the private company in its core competencies while expanding services to a larger customer base and increasing its fleet.
The purchase price of $6.5 million will be funded by cash, asset debt financing, 2,000,000 common shares of Enterprise Group, Inc. at a price of $0.25 and $1,000,000 in vender take-back financing to be paid over two years. Completion of this acquisition will be subject to Toronto Stock Exchange approval and satisfactory due diligence by Enterprise. Enterprise expects to close the transaction on or before September 14, 2012.
Enterprise also announces the end of a one year contract with CFO, Kevin Spitzmacher. Leonard Jaroszuk, President & CEO would like to thank Kevin for his time and efforts over the last year. Mr. Jaroszuk also states that on an interim basis, duties of the CFO will be performed by the Corporate Controller and past Interim CFO, Colette Fortin and Doug Moak, CMA. Efforts to place a new CFO are ongoing and the Company expects to make further announcements as it develops.
Enterprise Group, Inc. is a construction services company operating in the energy, utility and transportation infrastructure industry. The Company's focus is primarily underground construction and maintenance and above ground plants and facilities and specialized equipment rental. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management and human resources to support continued growth.
Forward Looking Statements
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on current beliefs or assumptions as to the outcome and timing of future events. Actual future results may differ materially. In particular, statements with respect to anticipated activity levels and profitability of the Company's utility and infrastructure division and anticipated increases in revenue and margins attributed to services provided by the Company to the energy sector contain forward looking information. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the next year. The forward-looking statements and information may not be appropriate for other purposes. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
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