ENTREC Completes Acquisition of Tiggo Transport Ltd.
SPRUCE GROVE, ALBERTA--(Marketwire - Nov. 2, 2012) - ENTREC Corporation (TSX VENTURE:ENT) ("ENTREC") is pleased to announce it has completed its previously announced acquisition of Tiggo Transport Ltd. ("TIGGO"), a heavy haul transportation and lifting services company based in Grande Prairie, Alberta and Dawson Creek, British Columbia. TIGGO operates a modern equipment fleet valued at approximately $10 million, including 6 crane mounted picker trucks, 25 tractor units, 25 support vehicles, and over 60 trailers.
The aggregate consideration paid on closing for 100% of the issued and outstanding shares of TIGGO consisted of (i) the issuance of 3,100,000 common shares of ENTREC; (ii) $12.0 million in cash; and (iii) 1,700,000 share purchase warrants, each warrant entitling the holder thereof the right to acquire one common share at an exercise price of $2.00 per share. The share purchase warrants expire on October 31, 2015. The final purchase price for TIGGO remains subject to certain adjustments related to TIGGO's working capital balances as at October 31, 2012.
During the twelve months ended September 30, 2012, TIGGO generated earnings before interest, taxes, depreciation and amortization ("EBITDA") of approximately $5 million.
ENTREC specializes in the lifting, transportation (over the road and on-site), loading, off-loading and setting of overweight and oversized cargo for the oil and gas, construction, petrochemical, mining and power generation industries. The common shares of ENTREC trade on the TSX Venture Exchange under the trading symbol "ENT".
FOR FURTHER INFORMATION PLEASE CONTACT:
Chairman & CEO
John M. Stevens
President & COO