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News » Canada » Logistec buys majority stake in trenchless technology firm » published 14 Jul 2017

Logistec buys majority stake in trenchless technology firm

Logistec Corporation has bought a majority interest in trenchless technology company Fer-Pal Construction.

It has acquired 51% of the shares in the company, which offers water main rehabilitation service. The aggregate purchase price of the transaction is CA$49.5m, subject to adjustments.

Toronto-based Fer-Pal specializes in water main rehabilitation projects using trenchless technologies of all types and sizes. Its clients are municipalities in Canada and the United States.

Fer-Pal has a longstanding relationship with Sanexen Environmental Services, a subsidiary of Logistec, which has developed proprietary technology for the trenchless rehabilitation of water mains, commercialized under the name Aqua-Pipe.

For the year ended 31 December 2016, Fer-Pal generated revenues of CA$97.4m and profits of CA$8.2m.

“We are very proud to have cemented our relationship with Fer-Pal and its dynamic management team,” said Madeleine paquin, President and CEO of Logistec Corporation. “Shaun McKaigue and his colleagues have built tremendous expertise and know-how in the water main rehabilitation business and together, we are confident to have the best team to successfully expand our footprint throughout North America.”

As part of the transaction, Sanexen and Fer-Pal have extended the terms of their contractual relationship, which include exclusivity rights in favour of Fer-Pal to market and promote Sanexen’s structural liner products in several Canadian provinces and US states.

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This article was published on 14 Jul 2017 (last updated on 14 Jul 2017).

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