Enterprise Group, Inc.

Enterprise Group, Inc.

January 03, 2014 13:01 ET

Enterprise Group, Inc. Announces Closing of Acquisition of Hart Oilfield Rentals Ltd.

ST. ALBERT, ALBERTA--(Marketwired - Jan. 3, 2014) - Enterprise Group, Inc. ("Enterprise," or the "Company") (TSX:E) is pleased to announce that it has completed its previously announced acquisition of Hart Oilfield Rentals Ltd. ("Hart"), a private oilfield service provider, for a purchase price of $22.6 million (the "Acquisition") subject to closing adjustments.

The Acquisition purchase price was paid through a combination of net proceeds from the Company's previously announced overnight marketed public offering (the "Offering") of subscription receipts of the Company ("Subscription Receipts"), the issuance of 1,388,890 common shares of the Company ("Common Shares") at a deemed price of $0.72 per share, funds available from the Company's credit facility and cash on hand. Canaccord Genuity Corp. acted as exclusive financial advisor to Enterprise in connection with the Acquisition.

In connection with the Acquisition, the gross proceeds from the Offering were released from escrow and the 20,835,000 Subscription Receipts converted into 20,835,000 Common Shares and 10,417,500 common share purchase warrants of Enterprise. After giving effect to the issuance of Common Shares pursuant to the Acquisition and conversion of Subscription Receipts, the Company currently has 110,104,892 Common Shares issued and outstanding. Enterprise has also now completed an increase to its credit facility for up to a maximum of $35 million (from $20 million), at a rate of prime plus 2%.

About Enterprise Group, Inc.

Enterprise Group, Inc. is a consolidator of construction services companies operating in the energy, utility and transportation infrastructure industries. The Company's focus is primarily construction services and specialized equipment rental. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management and human resources to support continued growth. Enterprise became a Western Canadian leader in flameless heat technology in September 2012 with its acquisition of Artic Therm International Ltd. and became a technological leader in underground infrastructure construction by the closing of Calgary Tunnelling & Horizontal Augering Ltd. in June 2013.

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