Logistec Corp., parent company of Sanexen Environmental Services, announced that it has acquired 51 percent of the shares of Fer-Pal Construction Ltd. for an aggregate purchase price of $49.5 million, subject to adjustments.
Established in 1986 and based in Toronto, Ontario, Fer-Pal specializes in water main rehabilitation projects using trenchless technologies of all types and sizes for municipalities in Canada and the United States, including Sanexen’s Aqua-Pipe technology. Fer-Pal has enjoyed a longstanding relationship with Sanexen, a subsidiary of Logistec, which has developed the proprietary Aqua-Pipe technology for the trenchless rehabilitation of water mains.
“We are very proud to have cemented our relationship with Fer-Pal and its dynamic management team,” said Madeleine Paquin, president and CEO of Logistec Corporation. “Shaun McKaigue and his colleagues have built tremendous expertise and know-how in the water main rehabilitation business and together, we are confident to have the best team to successfully expand our footprint throughout North America.”
Fer-Pal’s management team, including its president, Shaun McKaigue, its vice president of project management, Francesco Garcea, and its vice president of operations, Gerald Ramsay, will continue to lead Fer-Pal in their current roles following the transaction.
As part of the transaction, Sanexen and Fer-Pal have extended the terms of their contractual relationship, which include exclusivity rights in favour of Fer-Pal to market and promote Sanexen’s structural liner products in several Canadian provinces and United States.