Horizon North Logistics Inc. Announces Acquisition of Moose Haven Lodge, Provides Update on Fort McMurray Strategy
CALGARY, Jan. 8, 2018 /CNW/ - Horizon North Logistics Inc. ("Horizon North" or the "Corporation") (TSX: HNL.TO) announced today that it has completed the acquisition of Moose Haven Lodge in Janvier, Alberta and has formed two new Aboriginal partnerships in the Fort McMurray, Alberta area. The acquisition and new partnerships are key components of the Corporation's strategy with respect to opportunities in the Fort McMurray region.
Moose Haven Lodge Acquisition
Located 120 km south of Fort McMurray near the hamlet of Janvier, Moose Haven Lodge is a 288-bed open lodge servicing workforce accommodation needs in the Highway 881 corridor between Conklin, Alberta and Fort McMurray. The acquisition of Moose Haven Lodge is a key element of the Corporation's newly signed partnership with Janvier Aboriginal Industrial Services Corp., a wholly owned entity of the Chipewyan Prairie Dene First Nation ("Chipewyan Prairie"). Both the acquisition and partnership position Horizon North to secure future contracts in the surrounding area.
The purchase price of Moose Haven Lodge is $14 million, payable in a mix of cash and Horizon North common shares.
"We have invested significantly in our industrial business park, with Moose Haven Lodge as a vital piece to its future development," says Chief Vern Janvier of the Chipewyan Prairie Dene First Nation. "We are pleased that Horizon North purchased the lodge and joined with us to finalize our new camp and catering partnership. As partners, we look forward to generating new business opportunities in our territory which will benefit the Nation and all our members."
"To win work in these areas, Horizon North and our customers believe strong relationships are required with the Aboriginal communities who call the regions home," says Rod Graham, President and Chief Executive Officer of Horizon North. "Directly related to our relationship with Chipewyan Prairie, for example, we have already secured two significant operations contracts and believe there is potential to operate up to 10,000 beds within the Nation's territory."
Fort McMurray Strategy
Horizon North's partnership to the south of Fort McMurray with the Chipewyan Prairie Dene First Nation coincides with another new Aboriginal partnership to the north of Fort McMurray with Acden Services Limited Partnership ("Acden"), a wholly owned entity of the Athabasca Chipewyan First Nation. These two new partnerships join 21 others which Horizon North maintains with Aboriginal communities in Canada, and represent further foundational elements of the Corporation's strategy in the Fort McMurray area.
"This partnership is a significant one for Acden," says Garry Flett, Acden's President & Chief Executive Officer. "One of our leading priorities is to provide our clients with a diverse portfolio of services. Horizon North's reputation for quality, integrity and cost effectiveness is a perfect fit. We welcome them to the Acden family."
As a Progressive Aboriginal Relations ("PAR") committed company, engagement with the Aboriginal communities in the areas where Horizon North operates is a key part of the Corporation's social responsibility.
"When we look to the future with these two Aboriginal communities, as we do with all our partners," says Rod Graham, "we seek ways in which we can jointly use our expertise in industrial services and modular solutions to build lasting economic value and quality of life for the families and individuals who call the region home."
Adds Graham: "The reduction in oilsands activity is certainly well-documented. Less talked about, however, is that opportunities are still plentiful in the Fort McMurray area with the right partners. With our diverse offerings and our commitment to the communities we work with, Horizon North is well-positioned to leverage the potential in this region."
About Horizon North
Horizon North is a publicly listed corporation (TSX: HNL.TO) providing a full range of industrial, commercial, and residential products and services. Our Industrial Services division supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. Our Modular Construction division integrates modern design concepts and technology with state of the art, off-site manufacturing processes; producing high quality building solutions for commercial and residential offerings including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers in numerous sectors, anywhere in Canada.
Corporate Information
Additional information related to Horizon North, including the Corporation's annual information form, press releases, financial statements and MD&A are available on SEDAR at www.sedar.com
Forward-looking Statements
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Horizon North. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "expects", "believes", "anticipates" and similar expressions. This press release contains forward-looking statements pertaining to, among other things, the following: the positioning of Horizon North in securing future contracts, the ability of Horizon North to leverage potential in the Fort McMurray area and future opportunities from the Corporation's Aboriginal partnerships.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Horizon North as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Horizon North used for this press release may prove to be incorrect. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Horizon North and described in the forward-looking statements contained in this press release, including risks relating to the demand for modular structures. Risk factors that could affect Horizon North's operations and financial results are included in Horizon North's annual information form and other documents which may be accessed through the SEDAR website at www.sedar.com.
Although Horizon North believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. Horizon North's actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and, except as required by applicable securities laws, Horizon North disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Horizon North Logistics Inc.
Rod Graham, President and Chief Executive Officer or Scott Matson, Senior Vice President Finance and Chief Financial Officer, 1600, 505 - 3rd Street S.W., Calgary, Alberta T2P 3E6; Telephone (403) 517 - 4654, Fax (403) 517 - 4678; website: www.horizonnorth.ca
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