Wellco Energy Services Trust has reached an agreement for the acquisition of all of the outstanding shares of Sanitherm Engineering Ltd. Sanitherm is a Vancouver, British Columbia, Canada, based private company engaged in the design and assembly of both permanent and portable water and wastewater treatment systems.
The purchase price of the acquisition is $9.75 million, payable in cash, plus working capital adjustments and transaction costs. The Vendors have agreed to allocate 20% of the purchase price to open market purchases of Wellco Trust Units over a four-month period following the closing. These Trust Units will be held in escrow by a third party and released to the Vendors in four increments of 25% over a two-year period. The acquisition is expected to be financed with the Trust's credit facilities. The transaction has been approved by Wellco's Board of Directors, and is now subject only to regulatory approval and the completion of formal documentation. Closing is scheduled for April 30, 2007.
Sanitherm has been in business for approximately 60 years, providing design, assembly and installation of water and wastewater treatment plants around the world. The company recently completed a project for a major mining operation in Northern Ontario and its ongoing work includes a permanent wastewater facility for a large client in Fort McMurray as well as industrial and municipal clients in the United States
Source: Wellco