Canada’s SECURE Energy to Merge with Tervita in $2.3 Billion Deal
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SECURE Energy Services and Tervita to merge to create a stronger midstream infrastructure and environmental solutions business.
The combined company will have an implied total enterprise value of approximately $2.3 billion. Upon completion of the transaction, SECURE and Tervita shareholders will own approximately 52 percent and 48 percent, respectively, of the combined company.
The companies have entered into an arrangement agreement to combine in an all-share transaction pursuant to which SECURE will acquire all of the issued and outstanding common shares of Tervita.
“We are pleased to announce the combination of these two great companies, resulting in the creation of a larger scale midstream infrastructure and environmental solutions business. Together, our highly talented teams will be better positioned to serve our customers, optimize existing infrastructure assets and operations, and to drive greater discretionary free cash flow to the bottom line. We look forward to working with the Tervita board of directors and team, and we are excited about the value creation opportunities of this transaction for all stakeholders,” said Rene Amirault, chairman, president, and chief executive officer of SECURE.
“The merger results in the combination of complementary midstream infrastructure asset bases and environmental service lines, providing for enhanced scale and relevance, benefiting our shareholders, customers, suppliers, and the communities in which we operate,” said John Cooper, president and chief executive officer of Tervita.
“In SECURE, we have a partner who is equally committed to an employee centric culture with a focus on ESG, safety, performance and customer value, with whom we are eager to join forces to leverage our combined resources and strengths, which will drive a successful integration,” added Cooper.
Governance and Leadership
The combined company will be led by a proven management team that reflects the strengths and capabilities of both organizations. Rene Amirault will serve as chief executive officer, John Cooper will support the transition as chief integration officer, Chad Magus will serve as chief financial officer, and Allen Gransch as chief operating officer of Midstream. Additional senior leaders will be selected from the teams at both organizations and will be determined before the close of the transaction.
The board of directors will consist of eight members, with equal representation from the existing SECURE and Tervita board of directors. Grant Billing, current chairman of Tervita, will be chairman of the combined company. Rene Amirault will also serve on the board of directors of the combined company.
About SECURE Energy Services
SECURE is a publicly traded energy business providing industry leading customer solutions to upstream oil and natural gas companies operating in western Canada and certain regions in the United States through its network of midstream processing and storage facilities, crude oil and water pipelines, and crude by rail terminals located throughout key resource plays in western Canada, North Dakota, and Oklahoma. SECURE’s core midstream infrastructure operations generate cash flows from oil production processing and disposal, produced water disposal, and crude oil storage, logistics, and marketing. SECURE also provides comprehensive environmental and fluid management for landfill disposal, onsite abandonment, remediation and reclamation, drilling, completion and production operations for oil and gas producers in western Canada.
To stop by SECURE’s website, CLICK HERE
About Tervita
Tervita is an environmentally-focused waste service provider in Canada, providing a broad and integrated array of services and environmental management solutions for customers in the energy, industrial, and natural resource sectors, predominantly in Western Canada. For over 40 years, Tervita has been focused on delivering safe and efficient solutions through all phases of a project while minimizing impact, maximizing returns™. Tervita’s dedicated and experienced employees are trusted sustainability partners to their clients.
To stop by Tervita’s website, CLICK HERE
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