Lonestar West (LSI-V) June 20, '14 has made a strategic acquisition of certain assets of Vamp Oilfield Services Inc., an arm's-length oil and gas service provider, for total consideration of $9.77-million. Vamp started operations in 2007 and is currently operating a fleet of two Hydrovac trucks, nine vacuum trucks and 12 ancillary units out of its base in Moose Jaw, Sask. In calendar 2013, Vamp generated gross sales of $6.6-million and over $2.6-million in EBITDA (earnings before interest, taxes, depreciation and amortization). The acquisition increases Lonestar's fleet from 93 units to 116 units.
"The Vamp acquisition is in line with our corporate growth strategy. The addition of a base in Moose Jaw, Sask., will complement our existing base in Carlyle, Sask., and expand our presence in Western Canada," said James Horvath, chief executive officer of Lonestar. "Lonestar would also like to welcome Ryan Buckton to the company. Mr. Buckton's experience in the Moose Jaw area will be a valuable addition to our management team."
In consideration of the acquisition of certain assets of Vamp, the company paid $5.52-million cash on closing and issued five separate unsecured promissory notes totalling $2.25-million as deferred consideration. The notes are subject to certain performance thresholds being met and do not bear interest. In addition, Lonestar issued 543,478 common shares of the company at a price of $3.68 per share, or $2-million in total.
Lonestar is also pleased to announce a settlement for a total of $251,853 in Lonestar's favour for a legal claim against a former lease operator for breach of a non-competition clause. Lonestar received $47,317, net of legal fees, in damages and released $204,536 in accounts payable owed to the former lease operator into revenue. |
