PowerComm Inc. (www.powercomm.ab.ca/), one of the leading industrial electrical/ instrumentation contractors and valve reconditioning companies in Western Canada, has completed its previously announced acquisition of Redwater Machining and Manufacturing Co. Ltd. (www.rwmmc.com)
The purchase price for the entire transaction was $3,070,000 comprised of the operating business and several real estate assets. The real estate component was valued at $1,900,000 as an asset purchase and the shares of the operating business were purchased for $1,170,000. The transaction was completed using a combination of cash and common shares. The cash component is part of the proceeds from the PowerComm Initial Public Offering completed in May of this year.
"We are extremely pleased to bring Redwater Machining into the PowerComm group of companies," said Wayne Rutherford, PowerComm's president and CEO. "This acquisition gives us an additional, and complimentary presence to our Fort Saskatchewan facility, in an area of huge growth from both upgrader, refining and industrial infrastructure projects. Jack Ames and Larry Krause have built a solid business with a terrific reputation in the area and we will continue with the high level of service that has come to be expected by their clients. It is PowerComm's intention to add our full suite of electrical, instrumentation and valve services to Redwater Machining's already successful portfolio," said Rutherford.
Sturgeon County, which contains both Redwater and Fort Saskatchewan, has become a highly sought after area for the expansion and the addition of large projects including: heavy oil upgrading, refining, and agricultural processing facilities.
Redwater Machining generated $3,400,000 in revenue, for the twelve months ending May 31, 2007.