SPRUCE GROVE, ALBERTA--(Marketwired - Jul 3, 2013) - ENTREC Corporation ("ENTREC") (TSX VENTURE:ENT) today announced that it has completed its previously announced acquisition of a 100% interest in GT's Crane and Transportation Services Inc. and all of its operating subsidiaries ("GT's"). Based in Grande Prairie, Alberta, GT's had 180 employees and operated a fleet of 45 cranes, including all-terrain, rough-terrain and picker trucks, 130 multi-wheeled trailers and 50 tractors.
The aggregate consideration paid at closing consisted of (i) the issuance of 9,054,336 common shares of ENTREC; (ii) $37,223,380 in cash; and (iii) an unsecured promissory note of $7,293,770 bearing interest at an annual rate of 7.25% and due July 2, 2016. The final purchase price remains subject to adjustment based on GT's normalized earnings before interest, taxes, depreciation and amortization for the 12-month period ended June 30, 2013 and working capital at June 30, 2013.
ENTREC is also pleased to announce the appointment of Mr. Greg Toews as Executive Vice President Operations. Prior to joining ENTREC in conjunction with the GT's acquisition, Mr. Toews was the President and CEO of GT's from its inception in 1998.
"We are very excited to have Greg and his team joining the ENTREC team," said John M. Stevens, ENTREC's President and COO. "With our combined operations we now have a leading market position in Northeast B.C. and Northwest Alberta, and are well positioned to capture a significant portion of planned future investments in Liquefied Natural Gas ("LNG") driven infrastructure within these regions."
ENTREC is a leading provider of heavy lift and heavy haul services with offerings encompassing crane services, heavy haul transportation, engineering, logistics and support. ENTREC provides these services to the oil and natural gas, construction, petrochemical, mining and power generation industries. ENTREC's common shares trade on the TSX Venture Exchange under the trading symbol "ENT".
This press release contains forward-looking statements that reflect ENTREC's current beliefs and that are based on information currently available to ENTREC. These statements require ENTREC to make assumptions it believes are reasonable but, as a result of such assumptions, such forward-looking statements are subject to inherent risks and uncertainties. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond ENTREC's control.
Examples of such forward-looking statements in this press release relate to, but are not limited to, (i) ENTREC's belief the acquisition of GT's will position ENTREC as a leading heavy lift and heavy haul company in Northeast B.C. and Northwest Alberta and strongly position ENTREC to benefit from the expected future investments in LNG driven natural gas infrastructure spending.
Although ENTREC believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because ENTREC can give no assurance that they will prove to be correct. ENTREC's and GT's ability to achieve growth as a combined entity is dependent on, but are not limited to, ENTREC's ability to achieve facility consolidations or the elimination of redundant administrative and operating costs, fluctuations in the demand for specialized crane and heavy haul transportation services in the areas ENTREC serves, political and economic conditions, industry competition, and ENTREC's ability to attract and retain both customers and key personnel. Readers are cautioned not to place undue reliance on these forward-looking statements, which are given as of the date hereof, and to not use such forward-looking statements for anything other than their intended purpose. ENTREC undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Chairman & CEO
John M. Stevens
President & COO