Tervita Advances Industrial Growth Strategy with Acquisition of Main Line Industries Ltd.
December 14, 2020
- Adds additional source of stable revenue with complementary business and customers to Tervita
- Expands rail services across the Prairies and provides platform to further expand our Industrial service lines and market share
- Investment is accretive to Adjusted EBITDA, Discretionary Free Cash Flow per share, and is immediately delevering on a Debt/EBITDA basis
CALGARY, AB, Dec. 14, 2020 /CNW/ - Tervita Corporation ("Tervita", the "Company") (TSX: TEV), a leading Canadian waste management and environmental services provider, announced today the acquisition of the operating assets of Main Line Industries Ltd., a specialty contractor primarily servicing the rail services, excavation and pipe jacking industries located near Winnipeg, Manitoba.
"We are excited about this transaction and its alignment with our strategy to grow the Industrial side of our business," said John Cooper, President and Chief Executive Officer. "Our disciplined approach over the past several years to remove costs from the business, optimize our locations and achieve business efficiencies has positioned us well to continue to strategically execute upon accretive and delevering opportunities to grow our business and provide value for our shareholders and customers.
"Main Line Industries' services complement Tervita's existing business, particularly our Metals Recycling and Rail Services business lines, and provide a platform to expand our market share and geographic reach. This business also adds stable revenue with customers that are complementary to our current customer base. We are very excited to welcome the Main Line employees to our team and to continue to build on new and existing partnerships with customers and suppliers in the region."
Following this transaction, Tervita maintains a strong liquidity position of $155 million comprised of unutilized credit facility capacity, excluding cash.
Tervita is one of the largest waste and environmentally focused service providers in Canada, providing a broad and integrated array of services and environmental management solutions for customers in the energy, industrial, and natural resource sectors, predominantly in Western Canada.
For over 40 years, Tervita has been focused on delivering safe and efficient solutions through all phases of a project while minimizing impact, maximizing returns™. Our dedicated and experienced employees are trusted sustainability partners to our clients. Safety is our top priority: it influences our actions and shapes our culture. Tervita trades on the TSX as TEV. For more information visit www.tervita.com.
SOURCE Tervita Corporation