Vertex Resource Group Ltd. Acquires MAD Oilfield Solutions
SHERWOOD PARK, AB, March 2, 2021 /CNW/ - (TSXV: VTX) - Vertex Resource Group Ltd. ("Vertex" or the "Company") is pleased to announce that it has acquired MAD Oilfield Solutions (MAD), a privately-held company providing environmental services specializing in industrial cleaning, waste management and hydro-excavating, based out of Northern Alberta. The acquisition of MAD will add over 50 specialized units, along with other equipment to Vertex's fleet.
MAD is a leader in the industry, delivering quality services to clients throughout Northern Alberta for over 20 years with significant growth potential. MAD has excellent multi-year contracts in place with their customer base for industrial cleaning, maintenance, operational support, and waste management. This acquisition will strengthen Vertex's presence in the oilsands by adding MAD's locations in Fort McMurray and Lac La Biche to better service existing clients.
"This acquisition will greatly enhance Vertex's industrial cleaning asset base and capabilities, allowing Vertex to execute larger maintenance opportunities. Their strong leadership, operational excellence and safety culture will integrate well with Vertex's culture and core values" said Terry Stephenson, CEO and President of Vertex.
"The acquisition will position the combined MAD/Vertex Team with numerous opportunities to grow market share and offer more diverse service lines to our valued current and future customer base" said Corey Madill, President of MAD Oilfield Solutions.
The Acquisition was completed for a purchase price of $7.2 million and the assumption of $9.1 million in equipment loans and capital leases. Vertex will use its existing credit facilities to fund the acquisition.
ABOUT VERTEX
Established in 1962, Vertex has grown to become a leading provider of environmental services. Headquartered in Sherwood Park, Alberta, Vertex employs a staff of approximately 650 employees that provide services to help clients achieve their development goals. From initial site selection, consultation, and regulatory approval, through construction, operations, and maintenance, to conclusion and environmental cleanup, Vertex provides a wide array of services to customers operating in industries such as oil and gas, utilities, telecommunication, forestry, agriculture, mining, and government.
Vertex operates throughout Canada and the United States.
FORWARD-LOOKING INFORMATION
Certain statements contained in this news release, such as the Company's beliefs and expectations related to the Acquisition and anticipated revenue associated with the Acquisition, constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company will be able to comply with its obligations under its credit facilities, the Company's ability to integrate the acquisition and operations with the Company's business and operations and future demand for, and pricing of, the Company's services. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, fluctuations in market conditions, as well as the other risks and uncertainties applicable to the provision of environmental and industrial services and to the Company as set forth in the Company's Annual Information Form filed under the Company's SEDAR profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
Any "financial outlook" or "future oriented financial information", as such terms are used in applicable Canadian securities laws, in this press release, including the annual revenue expected to be associated with the Acquisition, has been approved by management of Vertex. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other circumstances.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
SOURCE Vertex Resource Group Ltd.
Terry Stephenson, CEO, or Sherry Bielopotocky, CFO at 780-464-3295
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