By June 9, 2017 Read More →

Alberta-based oilfield services co. Lonestar West sells to American firm Clean Harbors

clean harbors

Clean Harbors Vacuum Service Source: Clean Harbors

Lonestar, located in Sylvan Lake, has 160 workers, 12 operating centres throughout Canadian, US markets

Alberta vacuum services provider Lonestar West will be sold to multinational oilfield firm Clean Harbors in an all-cash transaction valued at $44.1CDN million, according to a press release.

Lonestar says it board of directors unanimously agreed to to the deal, which will see Lonestar shareholders receive $0.72CDN per share. Clean Harbors will assume $22.3 million in Lonestar outstanding debt.

Lonestar provides services for drilling operations, oil sands projects, plant maintenance, as well as commercial, municipal and civil projects.

“Daylighting and hydro excavation services are markets that we believe offer strong growth prospects,” said Alan S. McKim, Clean Harbors CEO.

“With the addition of Lonestar, we see an opportunity to accelerate our position in that marketplace and double our scale.”

The purchase price represents an 84.6 per cent premium over the closing price of the Lonestar shares on the TSX Venture Exchange for May 10.

Lonestar has more than 160 employees and maintains a network of 12 operating centres in key areas throughout Canada and the United States.

The company generated 2016 revenue of $43 millionCDN.

“Given the versatility of hydrovacs, we can leverage these highly desirable assets across a number of our lines of business. Geographically, this transaction aligns well with our existing footprint, as Lonestar serves key markets across Canada and the United States. We look forward to adding James Horvath and his talented team to our Daylighting services group,” said McKim.

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“This transaction, which has the full support of our Board of Directors and management team, will deliver fair value to our shareholders with a significant premium to recent trading prices,” said James P. Horvath, Lonestar’s president and CEO.

“It will also directly benefit our employees and customers.”

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