Newalta Enters Into Agreement to Sell Industrial Division for $300 Million and Announces 2015 Capital Budget

CALGARY, ALBERTA--(Marketwired - Dec. 23, 2014) - Newalta Corporation ("Newalta") (TSX:NAL) announced today it has reached agreement to sell its Industrial Division and announced its capital budget for 2015.

Industrial Division Sale

Newalta has entered into an agreement with Revolution Acquisition LP, a company formed by Birch Hill Equity Partners of Toronto, Ontario, to sell its Industrial Division for cash proceeds of $300 million plus the assumption of the associated asset retirement obligation (ARO). The Industrial Division includes an integrated network of over 35 locations with approximately 950 employees servicing key markets coast to coast in Canada. This division features the industrial facilities network, industrial-related onsite services, the lead-acid battery recycling facility located at Ville Ste-Catherine, Québec, an engineered non-hazardous solid waste landfill located at Stoney Creek, Ontario, and a used oil collection network and re-refining facility in North Vancouver, British Columbia.

"This transaction advances our strategy of unlocking value as we focus on our core growth divisions, New Markets and Oilfield," said John Barkhouse, President and CEO. "The Industrial Division is a solid business and has outstanding people but no longer fits with our strategic vision. The transaction is an excellent outcome for Newalta, the employees and customers of the Industrial Division. Birch Hill is a well-respected Canadian private equity firm with a proven track record of investing in leading companies that have demonstrated strong future potential."

"We are very excited about the prospect of working with Birch Hill to advance the Industrial Division's ambitious growth initiatives," said Todd Moser, Senior Vice President, Industrial Division at Newalta, who will now lead the newly formed entity as President and CEO. Pierre Schuurmans, a partner at Birch Hill commented, "We are pleased to add the Industrial Operations of Newalta to the Birch Hill family. We believe the division has tremendous opportunity to build on its strong capabilities, asset base and market positions across Canada and North America. The business of finding sustainable ways to manage waste streams for industry is a growing opportunity worldwide and we look forward to working with the Industrial Division team."