Entrec Corporation Signs Definitive Agreement to Sell Its Canadian Crane Business and Assets to Sterling Crane
ACHESON, Alberta, Dec. 12, 2019 (GLOBE NEWSWIRE) — ENTREC Corporation (“ENTREC” or the “Company”), a heavy haul transportation and crane solutions provider, today announced that it has signed a definitive agreement to sell its Canadian crane business and assets to Sterling Crane, part of Marmon Crane Services, a Berkshire Hathaway company.
“This sale is a nice strategic move for ENTREC,” commented John M. Stevens, ENTREC’s President and CEO. “Through this sale, we will be able to significantly reduce our long-term debt. In addition, we intend to partner with Sterling Crane to be a preferred supplier of heavy haul transportation services to Sterling Crane in Canada and utilize Sterling Crane as a preferred supplier of cranes services to ENTREC in the future for our Canadian operations.”The aggregate consideration to be paid at closing consists of cash of $21.2 million less certain holdback amounts. ENTREC will use the net proceeds from the sale to reduce its long-term debt. The asset sale is expected to close in early January 2020.Post-sale, ENTREC’s operations will be focused on the following businesses in 2020:Continuing to provide a full spectrum of crane and heavy haul transportation services in the United States through its locations in North Dakota, Colorado, Texas and Wyoming. This includes ENTREC’s recent expansion into Williston, North Dakota in November 2019;
Providing oilfield transportation and picker truck services throughout Alberta and North-east British Columbia through its investment in ENT Oilfield Group Ltd. and Capstan Hauling Ltd; and
Providing specialized heavy haul transportation services throughout Western Canada.About ENTRECENTREC is a heavy haul transportation and crane solutions provider to the oil and natural gas, construction, petrochemical, mining and power generation industries. ENTREC is listed on the TSX under the symbol ENT.About Sterling CraneBased in Edmonton, Alberta, Sterling Crane has served the Canadian energy, natural resource, construction, and industrial markets since 1954. It is part of Marmon Crane Services, whose fleet of more than 1,200 mobile cranes is among the world’s largest.Forward-looking StatementsThis press release contains forward-looking statements which reflect ENTREC’s current beliefs and are based on information currently available to ENTREC. These statements require ENTREC to make assumptions it believes are reasonable and are subject to inherent risks and uncertainties. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond ENTREC’s control. Examples of such forward-looking statements in this press release relate to, but are not limited to, (i) ENTREC’s expectation that the sale to Sterling Crane will be completed and the terms on which it will be completed; and (ii) ENTREC’s intention to partner with Sterling Crane to be a preferred supplier of heavy haul transportation services to Sterling Crane and utilizing Sterling Crane as a preferred supplier of crane services to ENTREC.Although ENTREC believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because ENTREC can give no assurance that they will prove to be correct. ENTREC may not be able to complete all required conditions to close the sale of its Canadian crane business and assets. Further, ENTREC’s ability to become a preferred supplier of heavy haul transportation services to Sterling Crane remains subject to finalization of the terms and conditions of any such arrangement.Readers are cautioned not to place undue reliance on these forward-looking statements, which are given as of the date hereof, and to not use such forward-looking statements for anything other than their intended purpose. ENTREC undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.For further information, please contact: John M. Stevens – President & CEO
Telephone: (780) 960-5625Jason Vandenberg – CFO
Telephone: (780) 960-5630www.entrec.com