“Westar also [sic] provides Enterprise with a strong foothold in the Fort St. John region, the centre of Western Canada’s burgeoning LNG industry,” President and Chief Executive Officer of Enterprise Group, Leonard Jaroszuk said. “This acquisition provides us with the base of operations in Fort St. John, and we intend to further develop this base by opening local offices for three of our other subsidiaries by the conclusion of this year.”
During a 12-month timeframe, Enterprise Group says Westar generated revenues of approximately $8.7 million, and goes on to say “the synergies between Westar” and Enterprise Group’s existing subsidiaries “will allow for both a rapid integration of this new business and the creation of significant operation efficiencies.”
The purchase price of $13.5 million will be delivered to Westar through a combination of $10 million in cash, $2 million in enterprise shares (2.5 million shares worth $80 per share), and $1.5 million in vendor take-back financing, which will be paid over the next two years.
Westar’s owner has also agreed to sign a five-year management agreement with Enterprise Group.
Westar’s convoy of equipment currently consists of nearly 400 owned pieces, and Enterprise Group goes on to say they plan to devote approximately $3 million towards further expansion of equipment.
Enterprise Group, Inc. is a consolidator of construction services companies operating the energy, utility and transportation infrastructure industries.