Enterprise Oilfield Group Inc (E)

[antman]

Enterprise Group closes Pro Tech purchase


2013-06-20 07:36 ET - News Release


Mr. Leonard Jaroszuk reports

ENTERPRISE GROUP, INC. ANNOUNCES CLOSING OF A STRATEGIC ACQUISITION

Enterprise Group Inc. has completed its acquisition of Pro Tech Construction Inc. for a purchase price of $2.05-million. The acquisition is effective June 19, 2013, and was financed through a cash only transaction.

This acquisition is seen as a highly strategic advance for the company, as Pro Tech's main asset is 12.29 acres of land and buildings combined with a development permit that allows for future expansion. The property acquired is ideally located in West Edmonton's busy Acheson Industrial park. This area has shown unprecedented growth and in combination with lack of developed industrial land in the area, has resulted in an increased appraised value of $3.5-million since the offer to purchase was accepted.

The location will also serve as a West Edmonton field office for TC Backhoe and Directional Drilling LP and Artic Therm International. This location will assist TC and ATI to expand their operations and at the same time is ideally located to support TC's new regional contract with a major utility company which is located in the same vicinity which TC has a long-term relationship with.

This West Edmonton location will increase the TC Backhoe's productivity and overall profitability since it will reduce travel time from their existing location. The savings in wages, fuel costs and lower maintenance costs will be approximately $230,000 annually.

Leonard Jaroszuk, president and chief executive officer, says: "We are excited about the opportunity this acquisition gives us since it not only allows us to better serve our Western regional customers, but it also allows us to expand our footprint and provides us the opportunity to expand all operations in Western Alberta."

The location will also be used as a staging area for larger jobs which require additional equipment or jobs that require logistics involving two or more Enterprise companies.

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