Enerflex Systems Income Fund
TSX : EFX.UN

Enerflex Systems Income Fund

January 30, 2007 14:45 ET

Enerflex Announces European Acquisition

CALGARY, ALBERTA--(CCNMatthews - Jan. 30, 2007) - Enerflex Systems Income Fund (TSX:EFX.UN), a leading supplier of products and services to the global energy sector, today announced it has entered into an agreement with the shareholders of the Netherlands based Powertec Beheer B.V. ("Powertec"), whereby Enerflex will acquire the operating assets of Powertec.

Mr. J. Blair Goertzen, President & CEO of Enerflex commented, "Powertec adds power systems manufacturing and Combined Heat and Power expertise, strong gas engine aftermarket capability and a significant base of long-term service contract revenue to our existing European operations. This acquisition substantially increases our critical mass and footprint in the region".

Powertec has a core team of approximately 100 personnel headquartered in a 73,000 square foot manufacturing facility in Rijsenhout, the Netherlands. Powertec generated revenue of approximately $56 million in 2006. It is anticipated Powertec will be accretive to Enerflex's cash flow in 2007 as it generates gross margin and earnings consistent with our existing European business.

Mr. Goertzen concluded by saying "we now have a solid platform in the European region to offer our customers access to a wide range of Enerflex products and services through a single point of access, consistent with our Enerflex Global strategy."

Enerflex Systems Income fund is a leading supplier of products and services to the global oil and gas production industry. Our core expertise lies between the wellhead and the pipeline. Enerflex provides natural gas compression, power generation and process equipment for sale or lease, hydrocarbon production and processing facilities, electrical, instrumentation and controls services and a comprehensive package of field maintenance and contracting capabilities. Through our ability to provide these products and services in an integrated manner, or as standalone offerings, Enerflex offers its customers a unique value proposition.

Headquartered in Calgary, Canada, Enerflex has approximately 2,800 employees. Enerflex, its subsidiaries, interests in affiliates and joint-ventures operate in Canada, Australia, the Netherlands, the United States, Germany, Pakistan, Egypt, Indonesia and Malaysia. Enerflex's trust units trade on the Toronto Stock Exchange under the symbol "EFX.UN".

Forward-Looking Statements

Certain information contained herein constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that we expect or anticipate may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "potential", "targeting", "intend", "could", "might", "should", "believe" or similar words suggesting future outcomes or outlook. The following discussion is intended to identify certain factors, although not necessarily all factors, which could cause future outcomes to differ materially from those set forth in the forward-looking information.

The risks and uncertainties that may affect the operations, performance, development and results of Enerflex's businesses include, but are not limited to, the following factors: the impact of general economic conditions; industry conditions, including the adoption of new environmental and other laws and regulations and changes in how they are interpreted and enforced; volatility of oil and gas prices; oil and gas product supply and demand; risks inherent in Enerflex's ability to generate sufficient cash flow from operations to meet its current and future obligations; increased competition; the lack of availability of qualified personnel or management; labor unrest; fluctuations in the foreign exchange or interest rates; stock market volatility, opportunities available to or pursued by Enerflex and other factors, many of which are beyond the control of Enerflex. The reader is cautioned that these factors and risks are difficult to predict and that the assumptions used in the preparation of such information, although considered reasonably accurate by Enerflex at the time of preparation, may prove to be incorrect or may not occur. Accordingly, readers are cautioned that the actual results achieved will vary from the information provided herein and the variations may be material. Readers are also cautioned that the foregoing list of factors and risks is not exhaustive. Additional information on these and other risks, uncertainties and factors that could affect Enerflex's operations or financial results are included in our filings with the securities commissions or similar authorities in each of the provinces of Canada, as may be updated from time to time. There is no representation by Enerflex that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and Enerflex does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by law. Any forward-looking information contained herein is expressly qualified by this cautionary statement.

Contact Information

  • Enerflex Systems Income Fund
    Leonard Cornez
    Vice-President & CFO
    (403) 236-6800
    (403) 720-4385 (FAX)
    or
    Enerflex Systems Income Fund
    Rhonda Bennetto
    Manager, Investor Relations
    (403) 236-6800
    (403) 720-4385 (FAX)
    or
    Enerflex Systems Income Fund
    P. John Aldred
    Executive Chairman
    (403) 236-6800
    (403) 236-6816 (FAX)
    or
    Enerflex Systems Income Fund
    J. Blair Goertzen
    President & CEO
    (403) 236-6800
    (403) 720-4385 (FAX)