Vancouver, BC, February 3, 2014 - Aveda Transportation and Energy Services (AVE.V) continues to grow its market share, closing its previously announced acquisition of Williston, North Dakota-based M&K Hotshot & Trucking and M&K Rig Service.
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Aveda provides specialized transportation services and equipment required for the exploration, development and production of petroleum resources in the Western Canadian Sedimentary Basin and in the United States, principally in and around the states of Texas and Pennsylvania.
With this acquisition, Aveda becomes a player in the Williston Basin, with the addition of approximately 170 pieces of oilfield hauling equipment, including 79 trailers, 15 conventional tractors, 14 winch trucks and 3 cranes, and approximately 395 pieces of rental equipment. The purchase price is anticipated to be between US$38 million and US$42 million, with an anticipated US$9 million in earnout consideration if certain EBITDA targets are met.
This follows the November acquisition of Edson, Alberta-based Belair Rentals, which allowed Aveda to raise its profile in the Cardium formation and in the Montney and Duvernay shales. As is typical with Aveda`s recent acquisitions, current M&K owners, management and nearly 90 staff will join the Aveda team.
Kevin Roycraft, President & CEO stated "With the completion of the acquisition we can focus on growing our US business in a high activity, oil-focused basin where rig counts have remained fairly stable over the last few quarters. As we work to integrate M&K`s assets and team, we will look to rapidly realize operational synergies and benefit from our growing brand recognition and increased scale."
The company continues to attract the attention of the investment community, having closed a bought deal private placement financing through a syndicate of underwriters co-led by Cormark Securities and Beacon Securities and including Clarus Securities, Mackie Research Capital, Dundee Securities and GMP Securities. This financing, consisted of 6.4 million subscription receipts, priced at $3.60, raised gross proceeds of approximately $23 million.
Upon the closing of this M&K acquisition, these subscription receipts have converted into common shares.
Aveda`s revenue for the 3 months ended September 30, 2013 grew by almost $3.5 million to $23.4 million, compared with revenue of $19.9 million for the same period on 2012. Aveda has reported 14 consecutive quarters of record revenue growth as compared to the same period of the prior year.
Bharat Mahajan, Vice President of Finance and CFO recently stated "Completing this acquisition essentially doubles the size of the company on an EBITDA basis, adding valuable scale, stability and further geographic diversity to our US operations."
The company has stated that it is continuing to actively pursue a number of other acquisition opportunities, and recently strengthened its balance sheet with the increase of its current operating facility with PNC Bank Canada Branch to $75 million. It also recently converted the principal amount of $4.72 million of convertible debentures held by Werklund Capital Corporation into common shares.
For more information, and a list of the analysts that cover the company, please visit the company`s website www.avedaenergy.com, contact Bharat Mahajan CFO at 403-264-5769 or email email@example.com. Please also review Aveda`s MD & A and news releases for a detailed list of risk factors.
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Barry Morgan, CFO
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Source: InvestmentPitch via GlobeNewswire