Investors: 2006 Press Release Archive
HSE To Acquire Industrial Fire And Safety Services Company In Sarnia, Ontario
NEWS RELEASE – March 14, 2006
HSE Integrated Ltd. ("HSE" or the "Company") is pleased to announce that it has entered into a non-binding Letter of Intent ("LOI") to acquire the shares of Sentry Fire Equipment Ltd. ("Sentry") of Sarnia, Ontario. Sentry provides industrial safety services to refineries, petrochemical plants and other industries in the areas of fixed fire suppression system installation and servicing, fire extinguisher service, breathing air equipment services, air quality monitoring and related training services.
The purchase price shall be $3,600,000 cash. The transaction is conditional upon several conditions precedent including completion of satisfactory due diligence and approval of the Board of Directors of HSE. It is anticipated the transaction will close early in the second quarter.
Sentry is owned by Ron and Elizabeth Brazeau. Ron Brazeau has agreed to join HSE in a management and operational capacity in HSE's growing industrial safety services division. Ron has over 30 years of experience in all aspects of industrial fire protection systems and plant safety. After ensuring on orderly handover of Sentry to its new owners, Ron will help HSE expand the Sentry service package to other communities in which HSE will be offering its comprehensive industrial safety services package including Fort Saskatchewan and Fort McMurray.
Sentry has had a consistent history of profitability. Based on the financial statements for the two fiscal years ended December 31, 2005, the average normalized EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) has been approximately $875,000.
It is anticipated that all Sentry’s staff will remain with HSE and that Sentry and HSE’s other business in Sarnia, Confined Space Rescue Services acquired in July 2005, will work together to offer one of the most comprehensive safety services packages available for industry in Sarnia and area.
David Yager, Chairman and CEO of HSE, had the following comments.
"One of Sentry’s core skills is the installation and maintenance of fixed fire suppression systems that are essential for the safe operation of refineries, petrochemical plants and other industries. Many of Sentry's major clients are the same as HSE's, only Sentry operates in a different segment of the petroleum exploration, development, production, refining, processing and distribution cycle. With the acquisition of Sentry, fixed fire protection systems become a core skill of our industrial and plant division. On the oilfield service side, HSE has offered a comprehensive safety services package to provide all of our clients’ needs. Sentry will be a big step in offering the same comprehensive package to our clients in other facets of their operations".
HSE is an integrated supplier of industrial Health, Safety and Environmental services. From its head office in Calgary, Alberta HSE serves its clients from field service locations in Alberta, British Columbia, Ontario, Nova Scotia and Michigan. HSE trades on the TSX Venture Exchange under the symbol "HSL".
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.For more information please contact:
David Yager, Chairman & CEO
Telephone: (403) 266-1833
E-Mail:
Tony Hidalgo, Chief Financial Officer
Telephone: (403) 266-1833
E-Mail: