Environmental solutions provider Newalta has closed the sale of its industrial division to Birch Hill Equity Partners for $300 million. The industrial division unit is now a stand-alone entity, operating under the name of Terrapure Environmental. Also, Todd Moser, a former senior vice president at Newalta, has been named president and CEO of Terrapure.
CALGARY, ALBERTA–(Marketwired – Feb. 27, 2015) – Newalta Corporation (“Newalta”) (TSX:NAL) announced today the completion of the sale of its Industrial Division to Revolution Acquisition LP (Revolution), a Birch Hill Equity Partners company, for cash proceeds of $300 million plus the assumption of certain decommissioning liabilities. Proceeds from the sale will immediately be used to pay down Newalta’s debt and to support the 2015 capital program.
“The sale of the Industrial Division significantly strengthens our balance sheet and provides financial flexibility ahead of a challenging year in our industry. It also enables Newalta to concentrate all of our resources and capital on the core growth opportunities available to us as a pure play energy services company,” said John Barkhouse, President and CEO. “We are pleased with the outcome of the sale and wish the Industrial Division success under the new ownership of Birch Hill.”
Effective today, the Industrial Division becomes a stand-alone entity, under the new name Terrapure Environmental. The company has 900 employees and includes a head office in Burlington, Ontario, and over 35 locations across Canada. Terrapure will continue to serve customers in various industry sectors from coast to coast. Former Newalta Senior Vice President Todd Moser will now lead Terrapure as President and CEO.
Newalta is a leading provider of innovative, engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from oil and gas exploration and production waste streams. We serve customers onsite directly at their operations and through a network of locations in Canada and the U.S. Our proven processes and excellent record of safety make us the first choice provider of sustainability enhancing services to oil and gas customers. With a skilled team of people, two decade track record of profitable expansion and commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.
About Birch Hill Equity Partners:
With $2 billion in capital under management, 20 partner companies and 33 fully realized investments since 1994, Birch Hill is the leader in long-term value creation in the Canadian mid-market. As a group, Birch Hill’s partner companies represent one of Canada’s largest corporate entities with over $5 billion in total revenue and more than 30,000 employees. For more information about Birch Hill Equity Partners, please visit www.birchhillequity.com.