Aveda Transportation and Energy Services Inc (TSXV: AVE) has completed its previously announced buy of Hodges Trucking Co, a U.S. operator and owner of rig moving and heavy haul equipment, from Seventy Seven Energy Inc. The purchase price was US$42 million. Aveda, a Calgary-based provider of oilfield hauling services and equipment rentals, is backed by Canadian private equity firm Werklund Capital. In a subsequent statement, it said the Hodges Trucking deal will increase the company’s operational footprint in key markets, expand its customer base and help it better manage price pressures.
Aveda Transportation and Energy Services Announces Closing of Hodges Trucking Acquisition
CALGARY, AB –(Marketwired – June 16, 2015) – Aveda Transportation and Energy Services Inc. (“Aveda” or the “Company”) (TSX VENTURE: AVE), a leading provider of oilfield hauling services and equipment rentals to the energy industry, today announced that, through its operating subsidiary in the US, it has completed the acquisition of Hodges Trucking Company, L.L.C. (“Hodges”), from an affiliate of Seventy Seven Energy Inc. (NYSE: SSE). The purchase price was US$42.0 million. US$15.0 million of the purchase price is financed through the Company’s existing senior credit facility and US$27.0 million is financed by a seller take-back note (the “Note”). The Note is a 5 year term debt note with no requirement for principal amortization. The Note bears interest at 9% per annum which interest shall be paid quarterly. The Note is secured by a 2nd lien on the Company’s fixed assets and accounts receivable. The Company expects to provide further details and an operation update later this week.
About Aveda Transportation and Energy Services
Aveda provides specialized transportation services and equipment required for the exploration, development and production of petroleum resources in the Western Canadian Sedimentary Basin and in the United States of America principally in and around the states of Texas, Pennsylvania, Oklahoma and North Dakota. Transportation services include both the equipment necessary to move the load as well as a trained, professional driver capable of securing, moving and manipulating the load at its origin and destination. Aveda’s rental operations include the rental of well-sites, tanks, mats, pickers, light towers and other equipment necessary for oilfield operations.
Aveda was incorporated in 1994 as a private company to serve the oil and gas industry. In the spring of 2006 the Company went public on the TSX Venture Exchange. Aveda has major operations in Calgary, AB, Sylvan Lake, AB, Leduc, AB, Edson, AB, Marshall, TX, Mineral Wells, TX, Pleasanton, TX, Midland, TX, Williamsport, PA, Buckhannon, WV, Williston, ND, Oklahoma City, OK and Cherokee, OK. Aveda is publicly traded on the TSX Venture Exchange under the symbol AVE. For more information on Aveda please visit www.avedaenergy.com.
This News Release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project”, “should” or similar words, including negatives thereof, suggesting future outcomes. In particular, this News Release contains forward-looking statements relating to: the anticipated closing of the Hodges acquisition, including timing thereof; and the Company’s strategy for integration and consolidation of acquisition targets. Aveda believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Aveda’s actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to the risks identified in Aveda’s annual information form and management discussion and analysis for the year ended December 31, 2014 (the “MD&A”), which are available for viewing on SEDAR at www.sedar.com. Any forward-looking statements are made as of the date hereof and, except as required by law, Aveda assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
For more information, please contact:
Bharat Mahajan, CA
Vice President, Finance and Chief Financial Officer
Photo courtesy of Aveda Transportation and Energy Services Inc