April 04, 2006 08:00 ET

Eveready Closes Acquisition of Tornado Rentals Ltd.

EDMONTON, ALBERTA--(CCNMatthews - April 4, 2006) - Eveready Income Fund (TSX:EIS.UN) ("Eveready") announces that it has closed its previously announced acquisition of 100% of the issued and outstanding shares of Tornado Rentals Ltd. ("Tornado"). Tornado is a private Alberta-based company that rents and sells a wide range of oilfield equipment. This includes positive pressure production packages, positive pressure swab and test tanks, flare stacks, incinerators, sonic flares, knockouts / blowdown drums, flame and detonation arrestors, separator skids, separator / tank combo packages, storage tanks, and mobile booster compressors.

The final purchase price for Tornado will be based on a multiple of 3.5 times earnings before management wages to owners, interest, taxes, depreciation, and amortization for the year ended March 31, 2006, less adjustments for long-term debt and working capital. However, as required by the purchase agreement, the final purchase price will be a minimum of $5.5 million and a maximum of $8.0 million, before adjustments for long-term debt and working capital. The final purchase price will be determined within 60 days of closing.

The final purchase price is payable via: (i) $3.0 million in cash at closing, and (ii) the remainder in Units of Eveready at a deemed price of $6.59 per Unit, payable within 90 days of closing.

Eveready is a growth oriented income fund that provides industrial and oilfield services, health, safety and environmental services, and oilfield equipment rental services to the energy, resource, and manufacturing sectors. The Units of Eveready trade on the Toronto Stock Exchange under the trading symbol "EIS.UN".

This press release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Eveready to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, fluctuations in the market for oil and gas and related products and services, political and economic conditions, the demand for services provided by Eveready, industry competition and Eveready's ability to attract and retain both customers and key personnel.

Contact Information

  • Eveready Income Fund
    Rod Marlin
    President & CEO
    (780) 451-6075
    Eveready Income Fund
    John M. Stevens
    (780) 451-6075
    (780) 451-2142 (FAX)
    Website: www.evereadyincomefund.com