Acquisition of the Business of TSL Industries Further Expands Vertex’s Presence in Manitoba & Grows Vertex’s Service Offering
Vertex Resource Group Ltd. (“Vertex”) is pleased to announce that it has acquired the business of TSL Industries, an environmental services company that provides vacuum, hydro vac, fluid hauling, hot oiling and pressure truck services in Manitoba effective May 31st. TSL Industries’ company owned and maintained fleet of equipment is used to serve the oil and gas industry as well as clients in other sectors including utilities and municipal work in the Virden, Manitoba area.
In recent years, TSL Industries has made strides in developing its service offering outside of the oil and gas industry while maintaining its core service relationships and capabilities. This aligns with Vertex’s current strategy, making TSL Industries an attractive acquisition opportunity, as Vertex continues to make efforts to diversify its client base. This transaction further entrenches Vertex’s geographic presence within the province of Manitoba as Vertex will now offer additional environmental services including vacuum, pressure, hydro vac and fluid hauling services on a permanent basis. Vertex will now be able to more effectively service the province of Manitoba and the Williston Basin resource play with two new locations in Kola and Waskada.
This acquisition will expand Vertex’s service offering with the addition of a hot oiler that is used to perform clearing and preventative maintenance on wells, pipelines, tanks and various other operational lines that experience build up of wax and other debris. This service is extremely complimentary to Vertex’s service offering as both a stand-alone service and integrated as part of an industrial cleaning and turnaround service package.
The acquisition was completed for a purchase price of $4.55 million which includes the assumption of $1.3 million of debt. The remaining $3.25 million was paid with a $2.5 million non-interest bearing promissory note payable over 2 years and $750,000 in cash.
Established in 1976, Vertex has grown to become a leading provider of environmental and environmentally focused industrial services. Headquartered in Sherwood Park, Alberta, Vertex employs a staff of approximately 750 employees that service a wide array of customers in industries such as upstream and midstream oil and gas, utilities, telecommunication, forestry, agriculture and government.
Vertex principally operates in western Canada and has some locations in the United States.
For further information please contact:
Terry Stephenson, CEO, or Michael Zvonkovic, CFO at Phone: 780-464-3295
Any “financial outlook” or “future oriented financial information” in this press release, as defined by applicable securities laws, has been approved by management of Vertex. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other circumstances.
Certain statements contained in this news release, such as the Company’s beliefs and expectations related to the Acquisition and anticipated revenue associated with the acquisition, constitute “forward-looking information” as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company will be able to comply with its obligations under the Facilities. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company’s financial condition and development plans change, fluctuations in market conditions, as well as the other risks and uncertainties applicable to the provision of environmental and industrial services and to the Company as set forth in the Company’s Annual Information Form filed under the Company’s SEDAR profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
Neither the 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 press release.