A Houston-based company has entered into a definitive agreement to acquire Nortalta Lodge for $367 million (US $289 million).
Civeo, one the largest global providers of workforce accommodations, logistics and facility management services, announced Monday they will buy 100 per cent of Noralta’s equity on a cash-free, debt-free basis subject to adjustment.
In a release, Civeo’s President and CEO Bradley J. Dodson says the deal will enhance their catering and facilities management capabilities.
“This transaction combines the two companies’ operational strengths, facilities and commitment to exceptional service, and strengthens our position as partner of choice for our customers. Importantly, it bolsters our dedication to sustainable economic development supporting the social and cultural identities of the First Nations in that region.”
Noralta was founded in 1997 and operates nine lodges in and around northern Alberta, most of which are in our region.
Founder and Chairman Lance Torgerson says the combined company will also be able to implement Civeo’s customer-facing technology into Noralta facilities.
“Underscoring this confidence in the strategy and direction of the combined business, Noralta’s shareholders will receive a meaningful amount of equity in Civeo.”
The deal is expected to increase Civeo’s standalone operating cash flow by approximately 75 per cent during the twelve month period, which ended September 30, 2017 and reduce Civeo’s third quarter leverage ratio.
According to the release, annual synergies of $10 million are expected by 2019, primarily related to operational and corporate efficiencies.
The transaction is anticipated to close in the second quarter of 2018.