The acquisition opens its business to a full spectrum of renewable energy and infrastructure crane services throughout North Dakota, Colorado and Texas
Wolverine, an energy and infrastructure service provider, has agreed to acquire a strategic renewables and infrastructure crane business in the US for a total consideration of CAD33.5m ($25.6m).
The deal, which secured Canadian Court approval, will be carried out through a sale and investor solicitation process (SISP) transaction.
The company said that the acquisition opens its business to a full spectrum of renewable energy and infrastructure crane services throughout North Dakota, Colorado and Texas.
With a fleet of nearly 50 cranes and 195 trailers, it is claimed to be one of the largest crane operations in the US.
Additionally, Wolverine expects the acquisition to create synergies with its present US operations and also significantly increases the company’s exposure to renewable energy and infrastructure.
The company said that the purchased fleet has a fair market value (FMV) of about CAD54.8m ($42m), according to third party appraisal values.
The acquisition is expected to be concluded on 1 October this year
Wolverine president and CEO Jesse Douglas said: “Wolverine is excited to continue our investment in clean energy initiatives, especially those with an infrastructure focus.
“We are extremely happy to gain this exposure and continue achieving deep value investments for our stakeholders.”
Furthermore, the company has also collaborated with a US based primary lender to secure funding for the acquisition and the current working capital of Wolverine.
Subject to court approval in the US and typical closing processes, the transaction is estimated to be concluded on 1 October this year.
Operating since 1952, Wolverine provides a range of services such as water management, production testing, oilfield/energy rentals, and environmental services that include waste disposal and custom crude treating.