Energy infrastructure companies Enerflex and Exterran merge in $924 million deal
Enerflex, Icanic Brands, and Osisko Development announced separate acquisitions of U.S.-based companies Exterran Corporation, LEEF Holdings, and Tintic Consolidated Metals, respectively. The transactions range from $151 million to $924 million. News in domestic deals featured Aecon Group Inc. partnering with Traylor Bros Inc. in a $288 million contract awarded by Metro Vancouver for the Annacis Water Supply Tunnel project in British Columbia.
Enerflex and U.S.-based Exterran access energy infrastructure global market in $924 million merge
Enerflex Ltd. and Exterran Corporation, a Houston-based supplier for compression and processing equipment, merged in an approximately $924 million deal to strengthen the companies’ presence in the global market of energy infrastructure. The deal represents an 18-per-cent premium to Exterran’s enterprise value as of Jan. 21.
Enerflex provides natural gas compression, oil and gas processing, refrigeration systems, and power generation equipment, along with in-house engineering and mechanical services. Pursuant to the transaction, Enerflex will retain its headquarters in Calgary.
“This is an exciting day in the history of our companies. The Transaction is immediately accretive to shareholders; enhances our presence, offerings, and scale across our regions; and importantly, executes upon our years-long strategic goal of increasing recurring revenues to improve the profitability and resiliency of our platform,” said Marc Rossiter, Enerflex President and CEO. “Enerflex and Exterran each have a long history of global expertise in the delivery of modular energy solutions. Together, we are more efficient and better positioned in global capital markets. The Transaction will improve our ability to partner with an expanded set of customers to solve their growing energy infrastructure challenges with integrity, creativity, commitment, and success.”
“We are excited about the ability to create shareholder value through this Transaction and improving our product and service offering. The scale and efficiencies this combination brings is the right path for Exterran and brings significant opportunities for accelerated growth in produced water treatment and energy transition products and services,” said Andrew Way, Exterran President and CEO.
Enerflex’s legal advisors include Norton Rose Fulbright US LLP, Norton Rose Fulbright Canada LLP, Davies Ward Phillips & Vineberg LLP, and Cravath, Swaine & Moore LLP.
RBC Capital Markets acted as financial advisor to Enerflex. TD Securities and Scotia Capital served as strategic advisors.
Icanic Brands to acquire 100 per cent of California cannabis extraction firm LEEF Holdings
Icanic Brands Company, Inc., a premium cannabis brands provider, agreed to acquire 100 per cent of LEEF Holdings, Inc., a cannabis extraction company based in California. The agreement is expected to close in the first quarter of 2022.
As per the agreement, Icanic Brands will pay either $151 million or two times LEEF’s trailing 12 months revenue for the period ending on Sept. 30, 2021, whichever is higher.
The monthly output of LEEF’s extraction and manufacturing facility can reach up to 45 tons of biomass and up to 3,000 liters of distillate extraction. The company’s cannabis cultivation site in California spans 1,900 acres.
Icanic Brands CEO Brandon Kou said, “Today represents a huge milestone for Icanic. Our ability to come together as one with an amazing company like LEEF will only further enhance our position in the market. Micah and the rest of the team have done an amazing job building one of the leaders in the California market and we couldn’t be prouder to call them our partners. This marriage will allow us to accomplish our collective goals quicker and I am proud to say that the combined teams have already been hard at work analyzing the synergies and identifying efficiencies allowing us to build towards a singular infrastructure.”
“I am incredibly excited to be taking LEEF into the next stage of its development and together with our new partners at Icanic. We look forward to continuing to build significant shareholder value for many years to come. It’s because of the relentless hard work of LEEF’s employees that we have found ourselves at what I believe is the starting point to the next chapter,” said LEEF CEO Micah Anderson. “I have been in the cannabis industry for many years and, along with the other founding partners of LEEF, have devoted our entire lives to building our company. Winning is the result of having the right people working together with the right vision and Icanic’s management team only strengthens the talents and relationships LEEF brings to the table. I look forward to working with the Icanic team to add tremendous value to the combined organization as it continues to expand and grow in the coming years.”
McMillan LLP acted as legal counsel to Icanic Brands.
Osisko to purchase 75 per cent stake in U.S. mining firm Tintic Consolidated Metal for $170 million
Osisko Development is set to acquire all of IG Tintic LLC’s 75 per cent stake in American mining company Tintic Consolidated Metals (TCM) for $170 million in cash and Osisko shares and a one per cent net smelter return royalty.
In a press release, Osisko expressed the intention to acquire the remaining 25 per cent interest in TCM. Upon completion of both transactions, Osisko Development will gain 100 per cent ownership of the fully permitted and producing Trixie Mine, along with mineral rights covering more than 17,000 acres in Tintic Mining District located in Central Utah.
“Since TCM was formed as a joint venture between IG Tintic (75 per cent) and Chief Consolidated (25 per cent) in June 2019, remarkable progress was made. In only 30 months, the Company reclaimed the surface infrastructure, reopened the first of a series of historic precious metal mines, made a significant new gold discovery at the Trixie Mine, making it one of the highest-grade gold mines in the world, and commenced production, ore processing and gold and silver sales,” TCM President and CEO Tom Bowens said. “The pace at which the Company has added value to the district is a testament to the skills of the Company’s team of exploration, mining, and development professionals. It has been the Company’s vision to bring this famous district back on-line as a major US gold, silver and copper production center and the Transaction with Osisko Development is the next step in that vision. Over three quarters of the Transaction compensation to the Company’s members is in shares of Osisko Development; members are excited to take this significant step towards realizing the value created to date and participating in a remarkable platform for the future development of TCM, and in the greater success of Osisko Development and its other flagship project, the Cariboo Gold Project in British Columbia.”
Aecon partners with Traylor Bros in $288 million contract for B.C. water supply tunnel project
Aecon Group Inc. joined with Traylor Bros Inc. to form TraylorAecon General Partnership in a $288 million contract awarded by Metro Vancouver for the Annacis Water Supply Tunnel, Fraser River Crossing project in British Columbia. Construction is anticipated to start by first quarter of 2022 and expected to end by the second quarter of 2027.
A press release by Aecon detailed the scale of work as “the construction of two deep vertical shafts, one on each side of the Fraser River” and “the installation of a watermain, valve chambers and surface piping.”
Aecon President and CEO Jean-Louis Servranckx said, "This complex, multi-year project further strengthens our diverse backlog in Western Canada and demonstrates our position as the partner-of-choice in the civil construction market for tunnelling and water infrastructure projects. This project will ensure the sustainable, reliable supply of clean drinking water for growing communities. As we continue to execute the Second Narrows Water Supply Tunnel project with Traylor, we are pleased to strengthen our partnership and further our relationship with Metro Vancouver.”
Aecon’s share of the contract, valued at $115 million, will be added to the company’s construction segment backlog in the first quarter of 2022.
