Black Diamond Group Announces the Strategic Acquisition of High-Security Modular Business in the United States
November 01 2016
CALGARY, AB--(Marketwired - November 01, 2016) - Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX: BDI), is pleased to announce the acquisition of all shares of MPA Systems LLC ("MPA"), a company specializing in leasing and selling high-security modular buildings and providing disaster recovery facility programs across the continental United States, for a cash purchase price of USD $3.1 million. The MPA fleet, based in Texas, consists of 63 modular bank buildings, and engages in disaster relief contracts for standby support, combining for annual revenues of approximately USD $1.5 million. While Black Diamond will acquire working capital, there is no debt assumed as part of this transaction.
There are minimal general and administrative costs being assumed as this business will be tucked under BOXX Modular's existing platform. The cash purchase price will be funded from Black Diamond's available cash and borrowing facilities, and is incremental to the previously announced $15 million 2016 capital expenditure plan.
"This acquisition establishes BOXX Modular as a leader in the modular bank market across the US, and demonstrates Management's commitment to growing and diversifying the Black Diamond platform," said Trevor Haynes, Chairman and Chief Executive Officer. "The disaster recovery facilities programs are a great complement to our business model and provides both revenue stabilization and future organic growth opportunities."
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.