SECURE Energy Services Inc. and Tervita Corporation Merge to Create a Stronger Midstream Infrastructure and Environmental Solutions Business
Strategic combination of highly complementary businesses expected to unlock significant shareholder value
CALGARY, AB, March 9, 2021 /CNW/ - SECURE Energy Services Inc. ("SECURE") (TSX: SES) and Tervita Corporation ("Tervita") (TSX: TEV) are pleased to announce a transaction to create a stronger midstream infrastructure and environmental solutions business that is expected to provide enhanced free cash flow generation resulting from greater scale and significant annual integration cost savings of $75 million, unlocking value for all shareholders. The combined company will have an implied total enterprise value of approximately $2.3 billion. Upon completion of the transaction, SECURE and Tervita shareholders will own approximately 52% and 48%, respectively, of the combined company. The companies have entered into an arrangement agreement (the "Arrangement Agreement") to combine in an all-share transaction pursuant to which SECURE will acquire all of the issued and outstanding common shares of Tervita (the "Tervita Shares") on the basis of 1.2757 common shares of SECURE (the "SECURE Shares") for each outstanding Tervita Share (the "Transaction"). The combined company will operate as SECURE and remain listed on the Toronto Stock Exchange ("TSX") as TSX: SES. The combined company will remain headquartered in Calgary, Alberta. Read more...