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Slide #33. Aveda Transportation and Energy Services Inc. — Operating assets of M&K Hotshot & Trucking, Inc. and M&K Rig Service, Inc.
Aveda Transportation and Energy Services Inc. (AVE.CA)
Operating assets of M&K Hotshot & Trucking, Inc. and M&K Rig Service, Inc.
Aveda Transportation and Energy Services Inc. (TSX VENTURE:AVE) ("Aveda" or the "Company"), 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 signed an asset purchase agreement to acquire the operating assets of Williston, North Dakota-based M&K Hotshot & Trucking, Inc. and M&K Rig Service, Inc. (collectively "M&K"). Aveda expects to acquire approximately 170 pieces of oilfield hauling equipment, including 79 trailers, 15 conventional tractors, 14 winch trucks and three cranes, and approximately 395 pieces of rental equipment with an estimated total fair market value of US$22.0 million, working capital estimated at US$5.5 million and other intangible assets. The initial purchase price is expected to be between US$38.0 million and US$42.0 million or 3.18 times 2013 EBITDA (expected to fall in the range of US$12.0 million and US$13.0 million), which includes the issuance of US$5.0 million in equity of Aveda at a price of $3.60 per share. An estimated US$9.0 million in additional consideration may be payable on an earnout basis over a period of three years if certain EBITDA levels are generated.
Phoenix Oilfield Hauling is engaged in the transportation of products, materials, and equipment required for the exploration, development and production of petroleum resources. Co. operates in Western Canada and the U.S.
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