TORONTO, Nov. 1st,
2023 /CNW/ - TerraVest Industries Inc., (TSX: TVK)
("TerraVest") is pleased to announce it has entered into an
agreement to acquire all the assets of the subsidiaries of Highland
Tank Holdings, LLC ("Highland Tank" or the "Company"). Based in
Stoystown, Pennsylvania, Highland
Tank is a leading manufacturer of fuel & chemical storage
tanks, LPG vessels and other custom built steel storage products in
North America.
The total purchase price of USD$78.0
million equates to a purchase price multiple on trailing
twelve-month EBITDA of approximately 4.0x.
As part of the transaction, John
Jacob, entrepreneur, and existing owner of Highland Tank
will retain the role of President and continue to manage
operations. Of the USD$78.0
million purchase price, USD$5.0
million will be retained by Mr. Jacob in the form of
TerraVest shares.
"Joining with TerraVest, offers a tremendous opportunity to the
people of both companies to accelerate our combined growth given
our strengths and complementary products. I look forward to leading
Highland Tank as it takes the next steps in its 75+ year history."
said Mr. Jacob
Dustin Haw, Chief Executive
Officer of TerraVest, welcomes the employees and management of
Highland Tank and looks forward to their continuing commitment to
the Company's entrepreneurial spirit and dedication to customers.
"Highland Tank is a strong business, a leader in its industry and a
self-sufficient operation. We're delighted to welcome its employees
to the TerraVest family. Highland Tank fits within our portfolio of
businesses perfectly and we look forward to leveraging our product
suite and scale to enhance Highland Tank's growth." said Mr.
Haw.
Caution Regarding
Forward-Looking Statements
This news release contains forward-looking statements.
All statements other than statements of historical fact contained
in this news release are forward-looking statements, including,
without limitation, statements regarding our strategic direction
and evaluation of the business segments and TerraVest as a whole,
TerraVest's plans with respect to its existing portfolio businesses
and long-term acquisition strategy and other plans and objectives
of or involving TerraVest. Readers can identify many of these
statements by looking for words such as "expects" and "will" or
similar terms or variations of these words. Although management
believes that the expectations represented in such forward-looking
statements are reasonable, there can be no assurance that such
expectations will prove to be correct.
By their nature, forward-looking statements require us to
make assumptions and, accordingly, forward-looking statements are
subject to inherent risks and uncertainties. There is significant
risk that the forward-looking statements will not prove to be
accurate. We caution readers of this news release not to place
undue reliance on our forward-looking statements because a number
of factors may cause actual future circumstances, results,
conditions, actions or events to differ materially from the plans,
expectations, estimates or intentions expressed in the
forward-looking statements and the assumptions underlying the
forward-looking statements.
Assumptions and analysis about the performance of TerraVest
as a whole and its business segments, the markets in which the
business segments compete and the prospects and values of the
business segments are considered in setting the business plan for
TerraVest, plans and/or ability to pay dividends, outlook for
operations, financial position, results and cash flows, other plans
and objectives and in making related forward-looking statements.
Such assumptions include, without limitation, demand for
products and services of the business segments in respect of the
Canadian and other markets in which the businesses are active will
be stable, and that input costs to business segments do not vary
significantly from levels experienced
historically. Should any of these factors or
assumptions vary, actual results may differ materially from the
forward-looking statements.
SOURCE TerraVest Industries Inc.