Canadian Equipment Rentals Corp. (“CERC” or the “Company”) has entered into an asset purchase agreement with Cooper Rentals Canada Inc. (“Cooper”), to sell all the assets of its wholly-owned subsidiary, 4-Way Equipment Rentals Corp. (“4-Way”), for cash proceeds of $8.5 million.
“This transaction is the next step in strengthening our balance sheet and narrowing the focus of the Company to the upstream and midstream energy services industry,” said Ken Olson, CFO of CERC. “The cash proceeds from the sale will be used to reduce bank indebtedness and provide us with greater re-financing flexibility.” Proceeds from the transaction represent approximately 73% of current tangible asset book value and approximately 5.2x twelve month trailing September 30, 2016 EBITDA.
The transaction, which is expected to close on or around February 9, 2017, is subject to approval by the TSX Venture Exchange and customary closing conditions. CIBC Mid-Market Investment Banking is acting as exclusive financial advisor to CERC with respect to the transaction.
About Canadian Equipment Rentals Corp.
Canadian Equipment Rentals Corp. is a Canadian public corporation with two operating divisions: Energy Services and General Rentals. The Energy Services division is engaged in the rental of surface rentals and accommodations to the Western Canadian Oil and Gas Industry. The General Rentals division is engaged in the rental of industrial and construction equipment. The Company trades on the TSX Venture Exchange under the symbol “CFL”.
About Cooper Rentals Canada Inc.
Cooper Rentals Canada Inc., headquartered in Mississauga, Ontario, is a full-service construction equipment rental company, servicing contractors across Ontario and Quebec. Cooper specializes in the rental of compact, aerial and heavy construction equipment while providing a wide range of related services and supplies.