Enterprise Group Inc. has announced the signing of a letter of intent to purchase a specialized underground infrastructure construction company with operations based in Alberta.
Enterprise's strategy is to continue to grow the private company in its core competencies while expanding services to a larger customer base while leveraging the synergies available through Enterprise's existing operations. For the year ended 2012, preliminary unaudited sales revenue for the private company was approximately $14.9 million and EBITDA was approximately $5.8 million.
Enterprise will purchase the shares of the private company for $12 million and will be funded by cash, asset debt financing, and $1,000,000 in vender take-back financing to be paid over two years. Completion of this acquisition will be subject to negotiation of a definitive share purchase agreement, satisfactory due diligence by Enterprise, completion of the asset-based debt financing and customary closing conditions. Enterprise expects to close the transaction on or before May 1.
Management is currently discussing available funding options with its investment banking advisors.
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