TSX Venture Symbol: CFL.UN
CALGARY, March 28 /PRNewswire-FirstCall/ - CERF GP Corp., the general partner of Canadian Equipment Rental Fund Limited Partnership ("CERF LP" or the "Partnership"), is pleased to announce that it has entered into an agreement for the purchase of 100% of the issued and outstanding shares of Maplethorpe Contractors Ltd. ("MCL") a private integrated waste management company based in Wetaskiwin, Alberta. The purchase price for the acquisition is $5,700,000, payable by cash in the amount of $3,475,000 and by the issuance of 890,000 limited partnership units ("Units") of CERF LP at a deemed price of $2.50 per Unit, subject to closing adjustments. MCL currently generates about $1,800,000 in annual EBITDA. The transaction, which is expected to close on or about April 15, 2011, is subject to approval by the TSX Venture Exchange and to other regulatory approvals and is subject to other customary closing conditions. Mr. David Maplethorpe, the current Chief Executive Officer of MCL, will join the CERF LP team after completion of the transaction and continue as the Chief Executive Officer of MCL.
Mr. Wayne Wadley, President of CERF GP Corp. states, "We are excited about the MCL acquisition. Mr. Maplethorpe has over 37 years of experience in the waste management industry. David's continuing role as CEO of MCL will, together with MCL's new affiliation with CERF LP, enable MCL to provide an even greater level of service to its customers. The acquisition of MCL creates immediate synergies with the operations of our wholly owned subsidiary, The Smart-Way Disposal & Recycling Company Ltd. ("Smart-Way"). We can now vertically integrate the waste management and recycling strategies of MCL with our own Smart-Way operations. This provides MCL with a potentially larger source of waste and recycling products through their managed facilities from the existing Smart-Way customer base. Also, MCL's waste collection and transfer services will immediately add size and depth to Smart-Way's existing high demand roll-off bin fleet in the Edmonton area."
MCL was founded in 1972 and currently receives over 90% of its revenue from certain contracts, some of which extend for as long as 15 years. The long term nature of MCL's waste facility management contracts supports CERF LP's mandate to grow the organization while still providing business operations which promote future distributions.
In addition to Mr. Maplethorpe, the current management and employees of MCL are expected to remain with and be fully engaged in the operation of MCL and will work closely with CERF LP's other subsidiaries, Smart-Way and 4-Way Equipment Rentals Corp., to ensure successful integration and growth.
More information on CERF LP can be found on the internet at www.cerflp.com.
CERF LP is an Alberta limited partnership engaged in the rental, sale and services of industrial and construction equipment and in waste management services. CERF LP trades on the TSX Venture Exchange under the symbol "CFL.UN" and before the foregoing issuance of Units, has 8,640,906 Units issued and outstanding.
Certain statements contained in this press release, including the completion of the acquisition of MCL, the continuation of the current management and employees of MCL and the integration of MCL with Smart-Way and 4-Way Equipment Rentals Corp., constitute "forward-looking statements" under applicable securities laws. These statements to future events or future performance and are based on the Partnership's current expectations, estimates, projections, assumptions and beliefs. Although the Partnership believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Accordingly, undue reliance should not be placed on these forward-looking statements. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements. In particular, but without limiting the foregoing, this press release contains forward-looking information pertaining to the anticipated completion of the acquisition contemplated in the agreement referred to above. All such forward-looking statements involve known and unknown risks and uncertainties, certain of which are beyond the control of the Partnership. The forward-looking statements contained in this press release are made as of the date hereof and the Partnership does not intend, and does not assume any obligation, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
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.
SOURCE Canadian Equipment Rental Fund Limited Partnership