CALGARY, ALBERTA–(Marketwired – Jan. 31, 2017) – Canadian Equipment Rentals Corp. (TSX VENTURE:CFL) (“CERC” or the “Company”) has entered into an asset purchase agreement with Cooper Rentals Canada Inc. (“Cooper”), to sell all the assets of its wholly-owned subsidiary, 4-Way Equipment Rentals Corp. (“4-Way”), for cash proceeds of $8.5 million.
“This transaction is the next step in strengthening our balance sheet and narrowing the focus of the Company to the upstream and midstream energy services industry,” said Ken Olson, CFO of CERC. “The cash proceeds from the sale will be used to reduce bank indebtedness and provide us with greater re-financing flexibility.” Proceeds from the transaction represent approximately 73% of current tangible asset book value and approximately 5.2x twelve month trailing September 30, 2016 EBITDA.
The transaction, which is expected to close on or around February 9, 2017, is subject to approval by the TSX Venture Exchange and customary closing conditions. CIBC Mid-Market Investment Banking is acting as exclusive financial advisor to CERC with respect to the transaction.
About Canadian Equipment Rentals Corp.
Canadian Equipment Rentals Corp. is a Canadian public corporation with two operating divisions: Energy Services and General Rentals. The Energy Services division is engaged in the rental of surface rentals and accommodations to the Western Canadian Oil and Gas Industry. The General Rentals division is engaged in the rental of industrial and construction equipment. The Company trades on the TSX Venture Exchange under the symbol “CFL”.
About Cooper Rentals Canada Inc.
Cooper Rentals Canada Inc., headquartered in Mississauga, Ontario, is a full-service construction equipment rental company, servicing contractors across Ontario and Quebec. Cooper specializes in the rental of compact, aerial and heavy construction equipment while providing a wide range of related services and supplies.
Forward-Looking Statements and Information
Certain statements included or incorporated by reference in this press release constitute forward-looking statements or forward-looking information. Forward-looking statements or information may contain statements with the words “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “budget”, “should”, “project”, “would have realized’, “may have been” or similar words suggesting future outcomes or expectations. In particular, forward-looking statements and information contained in this press release, include, but are not limited to, the closing of the sale of 4-Way assets on or around February 9, 2017 and the resultant greater re-financing flexibility. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements because the Company can give no assurance that such statements will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties. Although management believes these assumptions are reasonable, there can be no assurance that they will be proved to be correct, and actual results will differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. The forward-looking statements or information contained in this press release are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new contrary information, future events or any other reason, unless it is required by any applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.
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Chief Financial Officer
P: (403) 930-5434