CriticalControl Solutions Corp.

CriticalControl Solutions Corp.

November 03, 2009 09:35 ET

CriticalControl Acquires Gas Analytical Service of Bridgeport, WV

CALGARY, ALBERTA--(Marketwire - Nov. 3, 2009) - CriticalControl Solutions Corp. (TSX:CCZ) ("CriticalControl") today announced that CriticalControl Energy Services Inc., a wholly-owned subsidiary of CriticalControl incorporated in Delaware, has acquired all of the outstanding shares of Gas Analytical Service, Inc. ("GAS") for US$10 Million effective November 1, 2009. GAS is a provider of natural gas measurement services based in Bridgeport, WV with field offices in Indiana, PA and Canonsburg, PA.

GAS' primary business includes the provision of gas measurement equipment and services, including gas chart integration services to over 500 active clients based in the Appalachian Basin in the Eastern United States. According to GAS' management prepared financial statements for the nine months ended September 30, 2009, GAS generated revenue of approximately US$11.6 Million and earnings before interest, taxes, depreciation and amortization of US$2.1 Million. As part of the acquisition, Steve Sly, the principal of GAS will join CriticalControl as Vice President, Operations for the Eastern United States.

"The acquisition of GAS is our long awaited expansion into United States, enabling us to simultaneously leverage our gas production management technologies into a larger market and to deepen our understanding of field operations from GAS' strong operational focus ," said Alykhan Mamdani, President and CEO of CriticalControl. "This transaction marks our third acquisition in three months, successfully transitioning CriticalControl from an Alberta company to a North American organization with combined revenue reaching an annual CAD$45 to $50 Million on a pro forma basis."

The US$10 Million purchase price was paid through cash and the issuance of a US$9 Million promissory note, bearing interest at 4% per annum, payable over a 5 year term to the vendor, Steve Sly. After taking into account adjustments anticipated to occur at closing, as at September 30, 2009, GAS had assets of approximately US$4.1 Million and liabilities of US$1.1 Million. The cash portion of the purchase price was financed from cash on hand and CriticalControl's operating line.

About CriticalControl:

CriticalControl enables its clients to increase operational performance through the better control of critical business information. Through the balance of practicality, innovation and technology, we empower our clients with everything from strategies and tools, to outsourced solutions to manage information, wherever and in whatever form that information exists. For more information please visit

This media release contains certain forward-looking statements that reflect the current views or expectations of CriticalControl Solutions Corp. and its subsidiary with respect to their respective performance, business, and future events. Such statements are subject to a number of risks, uncertainties, and assumptions as outlined in the Company's filings with the Canadian securities regulatory authorities.

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