Distinct Infrastructure Group Inc (TSX-V: DUG) has acquired Mega Diesel Excavating Ltd, a provider of hydro vac, vacuum truck and excavating services in the Edmonton region. No financial terms were released. Distinct Infrastructure, a Toronto-based utility and telecom infrastructure contractor, said the deal supports it strategy to expand operations and the company’s presence in Western Canada. The acquisition is the first completed by Distinct Infrastructure since it received $20 million in subordinated debt funding from Canadian specialty finance firm Crown Capital Partners last November. The funding is also intended to support growth plans focused on Ontario.
Distinct Announces Acquisition of Mega Diesel Excavating Ltd.
TORONTO, ON–(Marketwired – March 10, 2016) – Distinct Infrastructure Group Inc. (the “Company”) (TSX VENTURE: DUG) is pleased to announce it has acquired all of the issued and outstanding securities of Mega Diesel Excavating Ltd. (“Mega”).
Pursuant to the terms of a share purchase agreement, the Company acquired all of the issued and outstanding securities of Mega from two arm’s length parties for an aggregate purchase price of $2,526,160 (the “Purchase Price”) of which $2,120,000 was paid on closing and the balance, being $406,160, is payable on July 10, 2017.
“We are excited to complete the acquisition of Mega,” stated Joe Lanni, Co-Chief Executive Officer of the Company. “Mega represents an important step for the Company’s plan to expand its operations and presence in Western Canada. Mega’s business is complimentary to that of the Company’s and will allow us to offer additional services to our existing client base and expand our hydrovacing capacity in Western Canada.”
“The acquisition of Mega is the first acquisition of the Company utilizing our $20 million acquisition line of credit,” said Alex Agius, Co-Chief Executive Officer of the Company. “The Company has a specific acquisition strategy and will ensure that it will execute that strategy in a manner that will benefit the Company, its clients and shareholders. We continue to evaluate potential acquisition targets and are planning on concluding additional acquisitions in the near future.”
About Mega Diesel Excavating Ltd.
Established in 2003, Mega is an Edmonton based company providing hydro vac, vacuum truck and excavating services throughout Edmonton and the surrounding area. Mega possess the capability to safely and efficiently remove debris, perform ground restoration while adhering to strict safety and industry standards.
About Distinct Infrastructure Group Inc.
Distinct Infrastructure Group Inc. is a utility and telecom infrastructure contractor with capabilities in design, engineering, construction, service & maintenance, and materials management. The company’s goal is to be the premier infrastructure provider for Canadian utilities, municipal and provincial governments. Distinct’s clients currently consist of blue-chip telecommunications and utility infrastructure companies throughout Ontario, and in Western Canada, including Bell, Rogers, and SaskTel. To find out more about Distinct, please visit www.diginc.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking information within the meaning of Canadian securities laws. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct.
Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: the state of the financial markets for the Company’s securities; the state of the Company’s industry; recent market volatility; the Company’s ability to raise the necessary capital or to be fully able to implement its business strategies; and other risks and factors that the Company is unaware of at this time. The Company expressly disclaims any obligation to update any forward-looking statements except as may be required by law.
The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
For further information please contact:
Chief Financial Officer
Telephone: (416) 675-6485
Distinct Infrastructure Group Inc.
Telephone: (416) 675-6485
Photo courtesy of Mega Diesel Excavating Ltd