Investors: 2006 Press Release Archive
HSE To Acquire Bear’s Safety Of Bonnyville, Ab
NEWS RELEASE – May 8, 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 Bear's Safety & Rescue Services Ltd. ("Bear's") of Bonnyville, Alberta. Bear's provides industrial safety services to upstream oil and gas processing facilities, refineries, and petrochemical plants in northeast Alberta and has provided safety supervision to drilling operations in northern Canada and internationally.
Bear's was founded in 1994 and is owned by Darcy Dedeluk of Bonnyville who has been active in the petroleum industry since 1978. Bear's has specialized in industrial and plant safety in northeast Alberta's active conventional and thermal heavy oil recovery regions for the past 12 years.
The total purchase consideration shall be comprised of up to $800,000 cash adjusted downwards to reflect funds owed to Bear's by the shareholder at closing. In addition, there will be a further consideration of 100,000 HSE shares that will be released in the next three years based upon Darcy Dedeluk's continued employment with HSE and Bear's reaching certain negotiated future revenue targets.
The acquisition of Bear's is conditional upon several conditions precedent including completion of satisfactory due diligence, approval of the Board of Directors of HSE and the approval of the TSX Venture Exchange. The intention is to close the Bear's acquisition as soon as possible.
Darcy Dedeluk will remain with HSE and will help grow Bear's in the northeast Alberta market and will help HSE expand its newly established Industrial Safety Services division. His experience in plant and industrial safety and Bear's strong customer relations will be of great value to HSE. All employees of Bear's will be offered continued employment with HSE.
Bear's has a history of profitability. Based on financial statements for the fiscal year ended October 31, 2005, Bear's had normalized EBITDA of $278,000 on revenues of $1.35 million. In the current fiscal year business has grown significantly. For the five month period ended March 31, 2006, internally generated financial statements indicated EBITDA of $207,000 on revenues of $1.1 million.
David Yager, Chairman and CEO of HSE, had the following comments.
"Bear's is another example of the strong regional safety companies that do an excellent job for the clients in their area but are restricted in their growth opportunities because the owner has to do all the work himself with his own money. We've talked a lot about HSE providing the capital, equipment and management support to help Darcy grow his business in a market he understands working for customers who trust and depend upon Bear's excellent work. We're both excited about building Darcy's franchise to make HSE a significant player in an active and growing market in which HSE currently has no geographical presence."
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:
Jim Hill, President
Telephone: (519) 429-0080
E-Mail: