ENTREC Corp. announced that it has signed a definitive agreement to acquire a 100% interest in GT's Crane and Transportation Services Inc. and all of its operating subsidiaries. Based in Grande Prairie, Alberta, GT's has 180 employees and operates a fleet of 45 cranes, including all-terrain, rough-terrain and picker trucks, 130 multi-wheeled trailers and 50 tractors. GT's has invested heavily in growing its equipment base over the past two years and now owns a modern fleet with a current average age of less than four years and fair value of approximately $37 million. GT's operations include Grande Prairie, Whitecourt, and Leduc, Alberta and Dawson Creek and Fort Nelson, B.C.
"We are pleased to welcome GT's to the Entrec team," said John M. Stevens, Entrec's president and COO. "GT's has a reputation for strong customer service in the regions it serves, and comes with an excellent management team and experienced employee base. With the combined operations of Entrec and GT's, we believe we will be well positioned to capture a significant portion of planned future investments in Liquefied Natural Gas ("LNG") driven infrastructure within these regions. This is in addition to the strong market position we already enjoy in Northwest B.C. where many of the proposed LNG facilities will be constructed. The acquisition is also expected to be immediately accretive to our earnings per share for fiscal 2013, even before accounting for significant annual operating synergies."
"We are very excited to combine our team with Entrec's," said Greg Toews, GT's president and CEO. "We believe Entrecis a great fit for both our customers and our employees, and that the business combination will enable us to better capture significant growth in these regions."
Post-closing, Toews will be appointed as Entrec's EVP of operations and oversee Entrec's business operations in Northwest Alberta and Northeast B.C. Entrec currently anticipates recurring annual operating cost synergies of approximately $3.0 million as a result of the acquisition, which will be achieved through facility consolidations and the elimination of redundant administrative and operating costs.
The acquisition of GT's is expected to close on or about July 2, 2013. Entrec also announced plans to update its 2013 capital expenditure program as a result of the GT's acquisition.
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