Enterprise Group Inc. Finalizes Purchase of Calgary Tunnelling & Horizontal Augering
Enterprise Group Inc. (TSX:E) hasannounced that it has completed its acquisition of aspecialized underground infrastructure construction company, Calgary Tunnelling& Horizontal Augering Ltd., for $12 million plus working capital, subjectto post-closing adjustment. The acquisition is effective May 1, 2013.
Founded in 1984, Calgary Tunnelling& Horizontal Augering Ltd. (CTHA) is a North American leader in the highlyspecialized tunneling field. CTHA uses a number of tunneling disciplines,including laser guided boring and augering, pipe ramming, pipe jacking/tunnelboring (TBM), among others. The previous owner/manager has agreed to a long-termemployment agreement and by retaining him and his expert team it will assistEnterprise to effectively integrate and invest into strategic growthinitiatives. Enterprise president and CEO Leonard Jaroszuk said, “CTHA hasthe potential for substantial growth over the next few years we are extremelyexcited to work with this tremendously skilled group.”
CTHA performs its services from theWest Coast through to central Canada across the energy, utility andinfrastructure segments. Its clients range from Canada’s largest rail companiesand premier utility providers to leading infrastructure contractors and some ofNorth America’s largest pipeline companies. CTHA’s revenue stream is welldiversified between all of these segments.
Current infrastructure projectsinclude a series of technically difficult tunnels being constructed at themassive $600 million Calgary International Airport expansion, while other crewsare completing several large diameter utility crossings under the Trans Canadahighway near Banff National Park. In Saskatchewan, crews are currently workingto bring in underground water lines to one of Canada’s largest Potashproducers.
The three- to five-year outlook forpipeline construction is especially intriguing. CTHA is a leader in undergroundtunneling for large diameter pipelines. Among several ongoing projects CTHA isengaged in a three-year, long distance pipeline project which is in its firstyear of construction. CTHA provides underground tunneling at several crossingswhich cannot be open-cut, such as road, highway and rail crossings. In 2008,the Kinder Morgan Anchor Loop was put into service. CTHA was selected toperform the tunneling through the extremely difficult terrain of JasperNational Park in the Canadian Rockies. Pipeline projects like these all requirethe specialized services that CTHA provides. The current roster of proposedlong distance pipelines is at a historic high and Enterprise believes that theCompany is extremely well positioned to benefit from this boom in pipelineconstruction.
