Latest Sonic Oilfield Services News
Jan 2, 2018
32 Degrees-backed Vertex acquires Sonic Oilfield Services January 2, 2018 © Copyright Vertex 2018 Vertex Resource Group Ltd (TSX-V: VTX) has acquired the business of Sonic Oilfield Services Ltd, a Calgary environmental services company that provides pressure trucks, fluid hauling, chemical and other products. Vertex, which paid $4.5 million in cash and stock, said the deal expands its presence in Saskatchewan. Based in Sherwood Park, Alberta, Vertex provides environmental and industrial services. Last October, it closed an $85.8 million qualifying transaction on the TSX Venture Exchange with the backing of Canadian energy private equity firm 32 Degrees Capital. Expands Vertex’s Presence in Saskatchewan SHERWOOD PARK, AB, Jan. 2, 2018 /CNW/ – (TSX.V:VTX) – Vertex Resource Group Ltd. (“Vertex”) is pleased to announce that it has acquired the business of Sonic Oilfield Services Ltd. (“Sonic”), an environmental services company that provides pressure trucks, fluid hauling, chemical and KCL products in Saskatchewan. Sonic’s well maintained fleet is used to serve the drilling, completions, production and facility needs of clients operating within Kindersley and Weyburn, Saskatchewan. This acquisition will add 60 pieces of rolling stock to Vertex’s fleet, strengthening Vertex’s presence in Saskatchewan and enabling the company to effectively service the resource and potash/mining regions of the province. In addition, Sonic’s Kindersley operation includes a KCL mixing facility which will now be owned and operated by Vertex. This acquisition was completed for the purchase price of $4.5 million with 2.35 million common shares being issued at $1.00 per common share, and the remaining balance paid in cash. The purchase price is subject to increase if certain valuation metrics of Vertex are not satisfied by December 31, 2019, or earlier following certain corporate events. The maximum increase in purchase price is $1.175 million. Vertex may, subject to approval of the TSX Venture Exchange, elect to satisfy this increase through the issuance of additional common shares. All Sonic operations will began operating as Vertex effective January 1, 2018. Terry Stephenson, President of Vertex stated: “Strengthening our local presence in both Kindersley and Weyburn is beneficial to our current customer base operating within Saskatchewan, as we increase our ability to effectively service the entire province. This acquisition not only expands our service area for environmental services, but also expands the geographic opportunity to provide synergistic and complimentary services such as environmental and land consulting to clientele operating in these areas. “Sonic has a long operating history following proven safe work practices, and has a track record of integrating technology that creates efficiencies for their clients. By utilizing Vertex’s breadth of expertise in fluid management, logistics, industrial cleaning and consulting, Sonic’s clientele will benefit from working with a single operator to meet their operational needs. This acquisition will strengthen both service offerings, resulting in benefits for each current customer base, as well as provide additional project opportunities from the increased geographic presence.” ABOUT VERTEX Established in 1976, Vertex has grown to become a leading provider of environmental and environmentally focused industrial services. Headquartered in Sherwood Park, Alberta, Vertex employs a staff of approximately 900 employees that service a wide array of customers in industries such as upstream and midstream oil and gas, utilities, telecommunication, forestry, agriculture and government. Vertex principally operates in western Canada and maintains a presence in select locations in the United States. For further information: Please contact Terry Stephenson, President and CEO, or Michael Zvonkovic, CFO, Vertex Resource Group Ltd., 780-464-3295.