Ridgeline to Acquire Assets of Piedmont Technical Services Inc.
CALGARY, Oct. 1, 2012 /PRNewswire/ - Ridgeline Energy Services Inc. ("Ridgeline" or the "Company") (TSXV: RLE, OTCQX: RGDEF, FSE: RL7) an energy services and water treatment technology company, today announced it has entered into an agreement to acquire the assets of Piedmont Technical Services, Inc. (PTEC). PTEC is a private equipment manufacturing company based in Charlotte, North Carolina that specializes in the production; sale and leasing of dissolved air floatation systems which is unique equipment used for water treatment.
Ridgeline and Dennis M. Danzik have developed a strong business relationship with PTEC for almost 2 years where PTEC has produced key pieces of equipment for Ridgeline's water treatment systems. This equipment is modified by Ridgeline and integrated into the Ridgeline system. With over 40 years combined experience in the production and sales of innovative water treatment systems, Chris Windsor and Bob Stone , the founders of PTEC, have established PTEC as having a reputation for producing quality equipment primarily for water treatment in the food industry. PTEC's business has grown in sales over the years with an EBITDA average of over 40%.
In addition to providing Ridgeline a secured supply of part of its core equipment at cost, PTEC brings to Ridgeline growing annual sales of nearly $2 million annually. As PTEC's equipment is mainly deployed in the food waste water industry it creates an opportunity in an area where Ridgeline currently has no presence. The acquisition also brings key engineering expertise that will be vital to Ridgelines ability to grow its water treatment business. Both Mr. Windsor and Mr. Stone will become employees of Ridgeline with the responsibility of managing the manufacturing of tankage and convergence systems in addition to sales into other industries including the food industry.
Mr. Danzik commented that "Both Mr. Windsor and Mr. Stone will add another layer of talent to our management and engineering teams that will be a key part of being able to deliver our products to market plus develop sales in new markets."
The consideration to be paid to PTEC for the assets will be US$1,600,000 in cash and 1,500,000 common shares of which 300,000 common shares will be released to PTEC every 4 months commencing 3 months after the closing date. An additional 1,500,000 common shares are issuable on an earn out basis where Ridgeline's EBITDA and sales grow at a targeted rate over a three year period.
About Ridgeline Energy Services Inc.
Ridgeline Energy Services Inc. is an energy services and water treatment company. The Company is applying proprietary technology to treat water generated from industrial and commercial waste water markets. These markets include a wide variety of clients across a broad spectrum of industries including oil and gas. Through its environmental consulting and remediation divisions, Ridgeline Environment has built a reputation as an established provider of environmental services to the Western Canadian oil and gas industry. Ridgeline GreenFill provides soil remediation and wet waste disposal services to the oil and gas industry. The Company trades on the TSX Venture Exchange under the symbol "RLE", the OTCQX as "RGDEF" and the Frankfurt Stock Exchange as "RL7".
Additional information is available on the Company's website at: www.ridgelinecanada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Tony Ker , CEO
"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 news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."
SOURCE Ridgeline Energy Services Inc.
More by this Source
Ridgeline Announces Management Agreement
May 13, 2013, 08:00 ET
Ridgeline Schedules Earnings Conference Call
May 10, 2013, 12:41 ET
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.