NAPEC Inc. Announces the Acquisition of the Assets of H.T. Sweeney & Son, Inc.
DRUMMONDVILLE, QUEBEC--(Marketwired - Jan. 19, 2018) - NAPEC Inc. ("NAPEC" or the "Corporation") (TSX:NPC) today announced the signing of an agreement to acquire the assets of H.T. Sweeney & Son, Inc. ("HTS"), a heavy civil construction business with customers in the commercial, industrial, environmental, utility and institutional sectors. The transaction is subject to customary closing conditions and is expected to close on February 26, 2018.
HTS is based in Delaware County, Pennsylvania, and offers its services in several states, including New York, New Jersey, Delaware, Maryland, Pennsylvania and Virginia. The company's customers include utility companies, refineries, engineering firms and construction contractors. Approximately 80% of its revenues come from the industrial and utility sectors, and approximately 20% are from commercial customers. HTS has a workforce of more than 150 employees. For the year ended on December 31, 2017, HTS generated revenues of approximately US$50.0 million.
The transaction provides for a purchase price of US$18 million, subject to certain adjustments. In addition, the transaction includes a sale price adjustment clause allowing for a maximum adjustment of US$2.4 million based on HTS's results during the fiscal year ending December 31, 2018. The transaction will be financed by new and existing credit facilities.
"The acquisition of H.T. Sweeney & Son, Inc. will allow us to vertically integrate our heavy civil construction services, which until now had been subcontracted out. HTS's activities are an excellent complement to Riggs Distler & Company's activities in terms of its geographical coverage, customers and service offering. This acquisition was anticipated and was an important driver of NAPEC's Board of Directors' valuation of the Corporation," said Pierre L. Gauthier, President and Chief Executive Officer of NAPEC.
This document contains forward-looking statements that reflect management's current expectations regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management assumes no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.
OVERVIEW OF THE CORPORATION
NAPEC is a company operating in the energy sector. The Corporation is a leading provider of construction and maintenance services to the public utility and heavy industrial markets, mainly in Quebec, Ontario, and the eastern United States. NAPEC and its subsidiaries build and maintain electrical transmission and distribution systems and natural gas networks. The Corporation also installs gas-powered and electric-powered heavy equipment for utilities, gas-fired industrial power plants, petrochemical facilities, and solar panel farms in North America. The Corporation also offers environmental construction and road matting services.
Additional information on NAPEC can be found in the SEDAR database (www.sedar.com) and on the Corporation's website, at www.napec.ca.
Source: NAPEC Inc.
Pierre L. Gauthier
President and Chief Executive Officer
Mario Trahan, CPA, CMA
Chief Financial Officer