Aveda Acquires Rental Assets, Opens New Texas Branch
By Anuja Abraham
Aveda Transportation and Energy Services, a leading provider of oilfield hauling services and equipment rentals to the energy industry, today announced it has acquired selected assets of 1st Rate Energy Services Inc. (“1st Rate”) and a privately owned company controlled by a director of 1st Rate (collectively “Complete Energy Services Inc.” or “Complete”). Aveda is predominantly acquiring tanks, matting, light towers and other ancillary equipment and trucking fleets that are expected to significantly increase the Company’s oilfield equipment rental fleet.
The Company is acquiring the assets of Complete for a total of approximately $7.5 million in cash. Once fully integrated, Aveda expects the acquisition to add approximately $3.1 million in annual EBITDA.
The Company also announced it is opening a branch in Odessa, TX which will primarily focus on rig moving in the west Texasregion. Aveda has also signed a lease on a new Pennsylvania facility that will see its operations in that state move from New Columbia to Williamsport, PA before the end of the year.
“We continue to identify sound opportunities to grow through acquisition, especially on the oilfield rentals side of our business,” said Mr. David Werklund, Interim President and CEO of Aveda. “The assets we are acquiring are highly complementary to our existing rentals fleet and will allow us to assist customers with increasingly larger and more complex initiatives. We intend to rapidly integrate and deploy these new assets so that they can begin contributing to our growth in the immediate near term. We also continue to expand our presence in the U.S. in an effort to drive growth in our core rig moving business by locating in close proximity to customers and areas of high drilling activity.”
In conjunction with the acquisition, the company has finalized an expansion of its existing credit facility to $50 million from $35 million previously. The Company’s credit facility is secured by a general security agreement with a first charge on all the Company’s assets, bears interest at prime plus 1.25% per annum plus an unused facility fee of 0.25% per annum. The credit facility is due on January 1, 2015. There are no principal payments required on this facility until the due date.