ILI Technologies Signs Letter Of Intent To Acquire An Oilfield Inspection Company For $1.6 Million In Cash
Technologies (TSX-V: ILI) is pleased to announce that the company has entered into a Letter of Intent to acquire an Oilfield Inspection Company located in Nisku, Alberta. ILI Technologies will acquire all of the issued and outstanding shares of the company for total consideration of $1.6 million in cash. Following a customary due diligence period, this acquisition is expected to be concluded in May 2007.
This company specializes in the inspection and repair of oilfield tubulars, and currently operates in Nisku, Alberta. The company was profitable in 2004, 2005 and 2006. They had revenues (unaudited) of approximately $2.7 million for the fiscal year ended June 30, 2006. Sales for the 6 months ended December 31, 2006, showed continued growth with revenues exceeding $1.5 million despite the general downturn in oil and gas activity during this period. All debts will be eliminated prior to the acquisition date, following which they are expected to maintain a positive working capital position. This acquisition is anticipated to be accretive to both cash flow and earnings.
“This is a strategic acquisition for us,” stated Serge Bonnet, president of ILI Technologies. “There are a number of efficiencies which ILI will be putting in place to increases revenues and earnings for the company. In addition, ILI will benefit from an increased labour force at a time when qualified personnel is difficult to obtain, and we will continue to build on our sales and service channels in Canada.”
The purchase price of $1.6 million will be paid entirely from working capital as ILI maintains a strong balance sheet. The company continues to look at other accretive acquisitions in North America to increase shareholder value.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.