Strad is pleased to announce the successful completion of the strategic acquisition of Got Mats? located in Elkhorn, Manitoba.
Strad Energy Services Ltd. ("Strad" or the "Company") (TSX:SDY) is pleased to announce the successful completion of the strategic acquisition (the "Acquisition") of Got Mats? ("Got Mats") located in Elkhorn, Manitoba. This Acquisition signifies Strad's further expansion into the energy infrastructure sector as well as the Company's extended reach into central Canada. For Strad, adding a location in southwest Manitoba means the Company can better serve central Canada's energy infrastructure projects in power, pipelines and mining as well as increase its ability to serve oil and gas customers on the eastern edge of the Western Canadian Sedimentary Basin and in the Bakken region.
Got Mats is a privately owned business based in Elkhorn, Manitoba. Products and service lines offered to customers include access mats, rig mats and crane mats, as well as mobile mat washing and bleaching facilities. Along with matting rentals and mat cleaning and bleaching capabilities, Got Mats offers customers transportation, mobilization and demobilization of matting products. The Company is pleased to have the employees of Got Mats join the Strad team with the completion of the Acquisition.
Consideration for the Acquisition consisted of 2,143,375 class A common shares ("Strad Shares") of Strad and $1.0 million in cash consideration at closing, representing a total transaction value of approximately $4.8 million, based on the 20 day weighted average trading price of Strad Shares on the Toronto Stock Exchange immediately preceding the date hereof. The Strad Shares issued to the shareholders of Got Mats pursuant to the transaction are subject to a time release escrow agreement and will be released in tranches over the course of a three year period following completion of the Acquisition.
Strad's Chief Executive Officer, Andy Pernal, noted "We are excited to have the Got Mats team join Strad. As companies, we share matching values around striving to exceed customer expectations and offering superior solutions to customers. This new matting location in southwest Manitoba marks a stepping stone east for Strad and will help the Company support growth operations into eastern Canada and the northeastern United States. Together we are stronger and can now offer more to all our customers by operating an expanded matting fleet geographically."
About Strad Energy Services Ltd.
Strad is a North American energy services company that provides rental equipment and matting solutions to the oil and gas and energy infrastructure sectors. Strad focuses on providing complete customer solutions in Canada and the United States.
Strad is headquartered in Calgary, Alberta, Canada. Strad is listed on the Toronto Stock Exchange under the trading symbol "SDY".