Entrec Corporation in Canada has agreed to sell its Canadian crane rental business to Sterling Crane.
The two companies signed a definitive agreement for the acquisition at US$21.2 million. Entrec Corporation said it will use the money to reduce its long-term debt.
Commenting on the move, John Stevens, Entrec president and CEO, said, “This sale is a nice strategic move for Entrec. Through this sale, we will be able to significantly reduce our long-term debt. In addition, we intend to partner with Sterling Crane to be a preferred supplier of heavy haul transportation services to Sterling Crane in Canada and utilise Sterling Crane as a preferred supplier of crane services to Entrec in the future for our Canadian operations.”
Post-sale, Entrec said it will focus on the following three areas: its crane and transport service provider in the USA; oilfield transport and picker truck services in Alberta and north-east British Columbia via ENT Oilfield Group and Capstan Hauling, and specialized heavy transport throughout Western Canada.
Alberta-based Sterling Crane was started in 1954 and supplies the Canadian energy, natural resource, construction, and industrial markets. It is part of Marmon Crane Services which has a fleet of more than 1,200 mobile cranes. Its parent company, Marmon Holdings Inc., is part of Warren Buffett’s Berkshire Hathaway company.
Two years back in 2016, Entrec Corporation has acquired HighMark Crane Ltd that specializes in providing crane rental and operator services and industrial equipment transportation services to the customer in the power transmission, mining and commercial construction industries across Canada. The deal was closed with a fair market value of approximately $5.5 million.