Canadian equipment rental and waste management company CERF has expanded with a deal to acquire oilfield equipment rental firm Zedcor Oilfield Rentals.
The company said the CA$21 million (€13.7 million) acquisition would create one of the largest oilfield rental providers in Western Canada.
Zedcor is a private oilfield equipment rental company based in Acheson (Alberta) with field offices in Fort St John (British Columbia), Grande Prairie (Alberta), and a corporate office in Calgary (Alberta).
CERF said the company’s fleet of rental assets was relatively new and included wellsite accommodations, light towers, tanks, bins, generators, rig mats and other ancillary equipment.
It said it estimated that Zedcor’s fleet had an average age of approximately three years and gross asset value of CA$45 million (€29 million). It said TRAC Energy Services, a subsidiary of CERF, would be merged with Zedcor, with the combined entity operating under the name Zedcor Energy Services.
CERF said the combination with Zedcor would diversify its business, given its operating area, equipment base and client mix. It said it would focus its efforts on three core business lines – oilfield rentals, construction rentals and waste and environmental services.
CERF president Austin Fraser said, “Zedcor has assembled one of the highest quality oilfield rental fleets in Canada with a strong operations team that consistently achieves industry-leading utilisation rates.
“Through this challenging commodity price environment, CERF remains focused on protecting its balance sheet through this leverage neutral transaction, while continuing to explore strategic acquisitions.”