Black Diamond Group Announces the Strategic Acquisition of Vancouver Area Rental Fleet
October 03 2016
CALGARY, AB--(Marketwired - October 03, 2016) - Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX: BDI), is pleased to announce the acquisition of all of the existing space rental fleet assets of Shelter Modular Inc. ("Shelter") for $1.3 million. The fleet is based in the Vancouver area and consists of approximately 100 space rental units which are currently 85% utilized with an annual revenue run rate of approximately $0.4 million. There are no incremental general and administrative costs being assumed as this fleet will be absorbed into Black Diamond's existing branch infrastructure. No working capital is being assumed as part of the asset purchase. Concurrent with the acquisition, Black Diamond signed a commitment to purchase $1.4 million of new manufactured assets from Shelter. The new manufactured assets will consist of approximately 50 new space rentals units to be delivered predominantly in 2017. The cash purchase price and capital commitments will be funded from Black Diamond's available cash and borrowing facilities.
In conjunction with this acquisition and other anticipated capital requirements to the end of the year, Black Diamond is increasing its previously announced $10.0 million 2016 capital expenditure plan to $15.0 million.
"This acquisition reinforces the ongoing growth plan of our BOXX Modular platform," said Trevor Haynes, Chairman and Chief Executive Officer. "These assets will quickly scale our previously announced Vancouver branch start up. The manufacturing arrangement ensures an additional independent source of supply to support our growth plans. Shelter has had a long-standing manufacturing operation in Southern B.C. and we look forward to the new working relationship."
About Black Diamond
Black Diamond Group provides workforce accommodation, modular buildings, energy services, and full turnkey lodging and major project solutions including planning and management, logistics, and catering to customers in Canada, the United States and Australia. We serve diverse sectors including oil and gas, mining, power, construction, engineering, military, government, and education.
Black Diamond has four core business units: Black Diamond Camps & Lodging, BOXX Modular, Black Diamond Energy Services, and Black Diamond International. Learn more at: www.blackdiamondgroup.com.