Capital Reserve Canada Ltd., Edmonton, Alberta, (OTCBB: CRSVF) plans to acquire Two Hills, Alberta-based United Fabrication & Welding Ltd. for C$805,000 in shares, C$200,000 in cash and C$125,000 in assumed debt in a total deal valued at C$1.13 million.
United Fabrication’s main assets include a facility in Two Hills that provides metal fabrication work for the oil and gas industry, including the Alberta oil-sands projects. United Fabrication will become a division of Capital Reserve will assist Capital Reserve subsidiary Behral Canada in manufacturing of SBOP line of blowout preventers.
Henry Neufeld will remain president of United Fabrication.
He says, “I am pleased to join Don Getty and his team at Capital Reserve in building a regional powerhouse servicing the oil and gas sector. I believe that United’s cost-structure within Capital Reserve will provide it with a foundation for future success in providing welding and fabrication services to the oil and gas industry.”
Capital Reserve president and chief executive Steve Claussen says, “The acquisition is a strong strategic fit, allowing CRC to enhance its position in the oil and gas service industry, and quickly accelerate revenue growth.”
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