Canada's CERF buys oilfield rental specialist

Canadian equipment rental and waste management company CERF Inc has agreed to buy TRAC Energy Services Ltd, an oil and gas rental company in Nisku, Alberta, for C$17.8 million, comprising C$11.7 million in cash and the balance in CERF shares.

TRAC, which has offices in Nisku and Calgary, rents a wide range of specialist oil and gas equipment and generates around C$4.5 million in EBITDA annual profits (earnings before interest, depreciation and amortisation).

CERF said that TRAC’s president, Cameron Miller, and vice president of sales and marketing, Travis Porter, will continue in their posts and manage TRAC as a new business unit of CERF.

Wayne Wadley, president of CERF, said the acquisition would give it access to Alberta’s strong oil and gas industry; “TRAC’S management and staff have demonstrated impressive growth over the past several years and that is a testament to their commitment to supplying a quality rental fleet with a high level of service. We expect that to continue within CERF.

“We are also delighted that Cameron and Travis will remain in leadership roles with TRAC and continue to guide its strategic direction. TRAC supplies much needed drilling and service rig related equipment to both large and smaller oil and gas production companies in Alberta.”