/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR
FOR DISSEMINATION IN THE UNITED
STATES./
EDMONTON, Feb. 28, 2019 /CNW/ - Wolverine Energy and
Infrastructure Inc. ("Wolverine" or the "Company")
(TSXV: WEII) is pleased to announce that it has now closed its
previously announced acquisition (the "Acquisition") of a
leading environmental services division from a major midstream
provider.
In addition, the Company is pleased to announce that it has
closed a disposition (the "Disposition") of three non-core
environmental services facilities in Saskatchewan being acquired as part of the
Acquisition for total cash proceeds of $15.4
million. The Disposition closed subsequent to the
closing of the Acquisition.
Strategic Midstream Acquisition
After taking into account the Disposition, Wolverine will
operate 9 environmental services facilities across Alberta and Saskatchewan, including multiple waste
management, waste disposal, and crude oil handling facilities (the
"Assets"). Wolverine forecasts trailing twelve-month EBITDA
for the Assets of $12-14 million,
which includes approximately $2-3
million of operational and administrative synergies.
After taking into account the Disposition, the total net
purchase price of the Assets was $34.6
million.
Non-Core Environmental Services Disposition
Wolverine has completed the Disposition for total cash proceeds
of $15.4 million to an arm's length
private Saskatchewan based
company. The Disposition includes environmental services facilities
at Midale, Oungre and Stoughton. Wolverine estimates trailing
twelve-month EBITDA for the assets in the Disposition of
approximately $2.5 million.
About Wolverine
Wolverine is an industry-leading, diversified energy and
infrastructure service provider in Western Canada and the U.S., providing a wide
range of services including: water management, oilfield/energy
rentals, heavy equipment sales and rentals, transportation and
trucking rentals, and civil/infrastructure construction.
Wolverine's original business roots and operations began in 1952.
Over the course of its history, the Wolverine group of companies
have pursued a strategy combining organic growth and strategic
acquisitions. Today, Wolverine is strongly positioned to
consolidate a highly-fragmented energy services market in
Western Canada, and is diligently
focused on return on capital deployed, market diversification, and
maintaining best-in-class services throughout the full life cycle
of its diverse clients' projects.
Cautionary Statements
This news release contains forward-looking statements and/or
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable securities laws.
When used in this release, the words "may", "would", "could",
"will", "intend", "plan", "anticipate", "believe", "estimate",
"expect", and similar expressions, as they relate to Wolverine or
its management, are intended to identify such forward-looking
statements. Such forward-looking statements reflect the
current views of Wolverine with respect to future events, and are
subject to certain risks, uncertainties and assumptions. Many
factors could cause Wolverine's actual results, performance or
achievements to be materially different from any expected future
results, performance or achievement that may be expressed or
implied by such forward-looking statements. In particular,
this news release contains or implies forward-looking statements
pertaining to the anticipated impact of the Acquisition (net of the
Disposition) on Wolverine's business, financial performance and
operations, including with respect to anticipated administrative
and operational synergies. These forward-looking
statements reflect material factors, expectations and
assumptions. Forward-looking statements included in this news
release should not be read as guarantees of future performance or
results. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from those
implied by such forward-looking statements. Wolverine's
business is subject to a number of risks and uncertainties. Readers
are encouraged to review and carefully consider the risk factors
pertaining to Wolverine's business described in PetroMaroc's
management information circular and proxy statement dated as of
November 14, 2018, which is
accessible on Wolverine's SEDAR issuer profile at
www.sedar.com. The forward-looking statements contains in
this release are made as of the date of this release, and except as
may be expressly be required by law, Wolverine disclaims any
obligation or undertaking to publicly release any updates or
revisions to any forward-looking statements contained herein to
reflect future results, events or developments.
Non-GAAP Measures
The Company uses accounting principles that are generally
accepted in Canada ("GAAP"), which
includes International Financial Reporting Standards ("IFRS").
Certain financial measures in this document do not have any
standardized meaning as prescribed by IFRS, including the non-GAAP
measure EBITDA. These non-GAAP measures used by the Company may not
be comparable to similar measures presented by other reporting
issuers. These non-GAAP financial measures are included because
management uses the information to analyze operating performance.
Therefore, these non-GAAP financial measures should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. EBITDA is
defined by the Company as net income (loss) before finance costs,
equipment rent, taxes, depreciation, (gain) loss on bargain
purchase, and amortization.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) has in any way
approved or disapproved the contents of this news release.
The TSXV does not accept responsibility for the adequacy or
accuracy of this release.
SOURCE Wolverine Energy and Infrastructure Inc.