Black Diamond Group Expands Southeast U.S. Footprint With Acquisition of Spectrum Modular
FORT WORTH, Texas and CALGARY, Alberta, Jan. 28, 2020 (GLOBE NEWSWIRE) -- Black Diamond Group Limited (“Black Diamond” or “the Company”) (TSX: BDI) is pleased to announce that it has acquired 100% of Spectrum Building Systems, Inc. and Spectrum Leasing, LLC (combined “Spectrum”).
Black Diamond, through its U.S. subsidiary doing business as BOXX Modular, has acquired Spectrum, a privately-owned supplier of modular buildings and turnkey modular solutions headquartered in Gainesville, Georgia. The company was founded in 2001 by its current owner and has a strong and well-earned reputation within Georgia and surrounding states.
Spectrum’s fleet consists of 202 high-quality modular buildings with a solid contract base in industries such as education, construction, healthcare and government. Spectrum’s rental product offering spans a number of product lines from single-wide construction-site offices to larger, more customized solutions. Given Spectrum’s history and relationships in its market, the company has and continues to be involved in the provision of custom modular sales projects throughout the region.
“We welcome Spectrum and its employees to the Black Diamond family. We are excited to be working with this high-performance team moving forward. This acquisition is consistent with our long term growth strategy and, when combined with the existing BOXX Modular assets in the region, gives Black Diamond a fleet of over 400 units in the Southeast region. The Company views this region to be very attractive due to the diverse and growing economies throughout greater Atlanta and surrounding areas. We now have a larger and more easily scalable base from which to organically increase our presence in the region as we look to meaningfully grow over the next several years,” stated Trevor Haynes, Black Diamond’s CEO.
Black Diamond expects Spectrum to contribute positively to the Company’s 2020 financial performance, while also providing attractive synergies. Spectrum’s fleet of space rentals assets qualify as leverageable collateral under Black Diamond’s ABL credit facility and are expected to add to the borrowing base and resulting available liquidity under that facility in 2020.
About Black Diamond Group
Black Diamond is a specialty rentals and industrial services Company with two operating business units - Modular Space Solutions (MSS) and Workforce Solutions (WFS). We operate in Canada, the United States, and Australia. MSS through its principal brands, BOXX Modular, Britco, and MPA, owns a large rental fleet of modular buildings of various types and sizes. Its network of local branches rent, sell, service, and provide ancillary products and services to a diverse customer base in the construction, industrial, education, financial, and government sectors. WFS through its principal brands, Black Diamond Camps and Black Diamond Energy Services, owns a large rental fleet of modular accommodation assets of all types and sizes and a fleet of liquid and solid containment assets. Its regional operating terminals rent, sell, service, and provide ancillary products and services including turn-key operated camps to a wide array of customers in the resource, infrastructure, construction, disaster recovery, and education sectors. The WFS business unit also includes the Company’s wholly owned subsidiary, LodgeLink, which operates a digital marketplace for business-to-business crew accommodation, travel, and logistics in North America.
Learn more at www.blackdiamondgroup.com.
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Certain information in this news release contains forward-looking statements including the Company's assessment of the effect of the Agreement on Black Diamond, the strategic rationale for the Transaction, the assessment of Black Diamond's future operations, business prospects and opportunities, the Company’s future expectations regarding the financial performance of the Company and its business units. With respect to the forward-looking statements contained in this news release, Black Diamond has made assumptions, regarding among other things: future commodity prices, that Black Diamond will continue to conduct its operations in a manner consistent with past operations, that counterparties to contracts will perform the contracts as written and that there will be no unforeseen material delays in contracted projects. Although Black Diamond believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could affect Black Diamond's operations and financial results are included in Black Diamond's annual information form and other reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at Black Diamond's website (www.blackdiamondgroup.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.