Canadian crane and transport company Entrec Corporation has acquired HighMark Crane Ltd.
The acquisition expands Entrec’s activities into the provinces of Manitoba, Newfoundland and Labrador.
HighMark specializes in crane rental, operator services and industrial equipment transport. Customers across Canada include power transmission, mining, and commercial construction contractors. Its equipment fleet includes nine boom trucks for the power transmission industry, cranes, trucks, trailers and other support equipment worth around CA$5.5 million (US$4.3 million).
John Stevens, Entrec president and CEO, commented, “The acquisition of HighMark represents a key stepping stone in our strategy to further diversify our business outside oil and gas. Led by Scott Dodds, its president and founder, HighMark has developed a strong reputation as a leading provider of crane services to the power transmission industry right across Canada. We are very pleased to welcome Scott and his employees to the Entrec family.”
The deal was for CA$3.5 million (US2.7 million) in cash (less a holdback of $0.2 million) plus Entrec issued 1,605,286 common shares at a value of $1.22 (US$0.95) per share based on the estimated fair market value of Entrec’s assets less its liabilities, excluding deferred income taxes, on 31 December 2015. For financial reporting purposes the common shares issued will be recorded at $0.30 per share, being the market price of Entrec’s common shares as traded on the Toronto Stock Exchange immediately prior to the acquisition, Entrec said.