Clean Harbors Buys Lonestar West Inc For $44.1 Million

in Canada/Other News by

Clean Harbors has announced it will buy Lonestar West Inc shares in a cash deal of $44.1 million.

Lonestar West has a variety of Hydrovacs, Vac-trucks, and water trucks servicing pipeline and oilfield construction jobs throughout Alberta. 

From MW:

Under the terms of the agreement, Lonestar shareholders will receive CAD $0.72 per share and Clean Harbors will assume CAD $22.3 million in outstanding debt. The purchase price represents an 84.6% premium over the closing price of the Lonestar shares on the TSX Venture Exchange (“TSXV”) for May 10, 2017, and an 82.2% premium over the weighted average trading price of the Lonestar shares on the TSXV for the 20 trading days ending May 10, 2017.

The transaction will enable Clean Harbors to:

Broaden its daylighting and hydro excavation capabilities

Capitalize on the growing demand for these services

Expand into new geographies, while accelerating growth in existing regions

Add economies of scale and achieve operating efficiencies

Maximize cross-selling opportunities

Acquire a business with the potential for strong cash flow generation

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