SHERWOOD PARK, AB, March 2, 2021 /CNW/ - (TSXV: VTX) - Vertex
Resource Group Ltd. ("Vertex" or the "Company") is pleased to
announce that it has acquired MAD Oilfield Solutions (MAD), a
privately-held company providing environmental services
specializing in industrial cleaning, waste management and
hydro-excavating, based out of Northern
Alberta. The acquisition of MAD will add over 50 specialized
units, along with other equipment to Vertex's fleet.
MAD is a leader in the industry, delivering quality services to
clients throughout Northern
Alberta for over 20 years with significant growth potential.
MAD has excellent multi-year contracts in place with their customer
base for industrial cleaning, maintenance, operational support, and
waste management. This acquisition will strengthen Vertex's
presence in the oilsands by adding MAD's locations in Fort McMurray and Lac La Biche to better service existing
clients.
"This acquisition will greatly enhance Vertex's industrial
cleaning asset base and capabilities, allowing Vertex to execute
larger maintenance opportunities. Their strong leadership,
operational excellence and safety culture will integrate well with
Vertex's culture and core values" said Terry Stephenson, CEO and President of
Vertex.
"The acquisition will position the combined MAD/Vertex Team with
numerous opportunities to grow market share and offer more diverse
service lines to our valued current and future customer base" said
Corey Madill, President of MAD
Oilfield Solutions.
The Acquisition was completed for a purchase price of
$7.2 million and the assumption of
$9.1 million in equipment loans and
capital leases. Vertex will use its existing credit facilities to
fund the acquisition.
ABOUT VERTEX
Established in 1962, Vertex has grown to become a leading
provider of environmental services. Headquartered in Sherwood Park, Alberta, Vertex employs a staff
of approximately 650 employees that provide services to help
clients achieve their development goals. From initial site
selection, consultation, and regulatory approval, through
construction, operations, and maintenance, to conclusion and
environmental cleanup, Vertex provides a wide array of services to
customers operating in industries such as oil and gas, utilities,
telecommunication, forestry, agriculture, mining, and
government.
Vertex operates throughout Canada and the
United States.
FORWARD-LOOKING INFORMATION
Certain statements contained in this news release, such as
the Company's beliefs and expectations related to the Acquisition
and anticipated revenue associated with the Acquisition, constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws. Forward-looking information is based on
plans, expectations and estimates of management at the date the
information is provided and is subject to certain factors and
assumptions, including, that the Company will be able to comply
with its obligations under its credit facilities, the Company's
ability to integrate the acquisition and operations with the
Company's business and operations and future demand for, and
pricing of, the Company's services. Forward-looking information is
subject to a variety of risks and uncertainties and other factors
that could cause plans, estimates and actual results to vary
materially from those projected in such forward-looking
information. Factors that could cause the forward-looking
information in this news release to change or to be inaccurate
include, but are not limited to, the risk that any of the
assumptions referred to prove not to be valid or reliable, that
occurrences such as those referred to above are realized and result
in delays, or cessation in planned work, that the Company's
financial condition and development plans change, fluctuations in
market conditions, as well as the other risks and uncertainties
applicable to the provision of environmental and industrial
services and to the Company as set forth in the Company's Annual
Information Form filed under the Company's SEDAR profile at
www.sedar.com. The Company undertakes no obligation to update these
forward-looking statements, other than as required by applicable
law.
Any "financial outlook" or "future oriented financial
information", as such terms are used in applicable Canadian
securities laws, in this press release, including the annual
revenue expected to be associated with the Acquisition, has been
approved by management of Vertex. Such financial outlook or future
oriented financial information is provided for the purpose of
providing information about management's current expectations and
plans relating to the future. Readers are cautioned that reliance
on such information may not be appropriate for other
circumstances.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
SOURCE Vertex Resource Group Ltd.