Clean Harbors Inc. and Lonestar West Inc. reached a definitive agreement whereby Clean Harbors will acquire the outstanding shares of Lonestar in an all-cash transaction valued at CAD $44.1 million.
Under the terms of the agreement, Lonestar shareholders will receive CAD $0.72 per share and Clean Harbors will assume CAD $22.3 million in outstanding debt. The purchase price represents an 84.6-percent premium over the closing price of the Lonestar shares on the TSX Venture Exchange for May 10, 2017, and an 82.2-percent premium over the weighted average trading price of the Lonestar shares on the TSXV for the 20 trading days ending May 10, 2017.
The transaction will enable Clean Harbors to:
- Broaden its daylighting and hydroexcavation capabilities.
- Capitalize on the growing demand for these services.
- Expand into new geographies, while accelerating growth in existing regions.
- Add economies of scale and achieve operating efficiencies.
- Maximize cross-selling opportunities.
- Acquire a business with the potential for strong cash flow generation.
For more information, visit www.Cleanharbors.com or www.lonestar west.com, or call (781) 792-5100 or (403) 887-2074.