CDN NEWS | 
US NEWS 
March 26, 2018 – St. Albert, Alberta – Enterprise Group, Inc. (the “Company” or “Enterprise”) [TSX:E], a consolidator of services to the energy sector; focused primarily on specialized equipment rental, announcing today that it has closed the previously reported sale of the assets of its trenchless solutions business unit, Calgary Tunnelling & Horizontal Augering (“CTHA”), to a private arm’s length purchaser.
Acquired in June 2013 for $12.0 million, over the course CTHA generated approximately $60 million in profitable revenue to Enterprise.
Gross proceeds of the transaction are $20.6 million pursuant to post-closing working capital adjustments. All proceeds from this transaction will be deployed towards reducing Enterprise’s debt, placing the Company in the enviable position of being net debt free.
Enterprise’s corporate structure will allow the utilization of tax losses to offset the gain on this transaction.
In a news release dated March 15th that announced full year results to December 31, 2017 the Company provided a breakdown adjusted for goodwill and deferred taxes, assets in excess of total debt of $51 million or $0.92 per share. The CTHA transaction improves this position, increasing it to $56 million or $1.01 per share.
Management’s execution of its growth plan bodes extremely well for the future of Enterprise as well as its shareholders. Management intends to build and grow its three remaining divisions and acquire additional equipment rental businesses.
There are a number of acquisition targets currently being evaluated by the Company.
The paydown of the PNC credit facility will free up the $25 million line for future acquisition purposes. Management has also been offered a further $15 million line from a prominent U.S. based non-bank lender for acquisition purposes.
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For questions or additional information, please contact:
Leonard Jaroszuk, President & CEO, or
Desmond O’Kell, Senior Vice-President
780-418-4400
[email protected]
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