TERRAVEST ANNOUNCES THE ACQUISITION OF HIGHLAND TANK
TORONTO, ONTARIO (November 1st, 2023) – TerraVest Industries Inc., (TSX: TVK) (“TerraVest”) is pleased to announce it has entered into an agreement to acquire all the assets of the subsidiaries of Highland Tank Holdings, LLC (“Highland Tank” or the “Company”). Based in Stoystown, Pennsylvania, Highland Tank is a leading manufacturer of fuel & chemical storage tanks, LPG vessels and other custom built steel storage products in North America.
The total purchase price of USD$78.0 million equates to a purchase price multiple on trailing twelve-month EBITDA of approximately 4.0x.
As part of the transaction, John Jacob, entrepreneur, and existing owner of Highland Tank will retain the role of President and continue to manage operations. Of the USD$78.0 million purchase price, USD$5.0 million will be retained by Mr. Jacob in the form of TerraVest shares.
“Joining with TerraVest, offers a tremendous opportunity to the people of both companies to accelerate our combined growth given our strengths and complementary products. I look forward to leading Highland Tank as it takes the next steps in its 75+ year history.” said Mr. Jacob
Dustin Haw, Chief Executive Officer of TerraVest, welcomes the employees and management of Highland Tank and looks forward to their continuing commitment to the Company’s entrepreneurial spirit and dedication to customers. “Highland Tank is a strong business, a leader in its industry and a self-sufficient operation. We’re delighted to welcome its employees to the TerraVest family. Highland Tank fits within our portfolio of businesses perfectly and we look forward to leveraging our product suite and scale to enhance Highland Tank’s growth.” said Mr. Haw.
FOR FURTHER INFORMATION PLEASE CONTACT:
TerraVest Industries Inc.
Chief Executive Officer
Caution Regarding Forward-Looking Statements
This news release contains forward-looking statements. All statements other than statements of historical fact contained in this news release are forward-looking statements, including, without limitation, statements regarding our strategic direction and evaluation of the business segments and TerraVest as a whole, TerraVest’s plans with respect to its existing portfolio businesses and long-term acquisition strategy and other plans and objectives of or involving TerraVest. Readers can identify many of these statements by looking for words such as “expects” and “will” or similar terms or variations of these words. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.
By their nature, forward-looking statements require us to make assumptions and, accordingly, forward-looking statements are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. We caution readers of this news release not to place undue reliance on our forward-looking statements because a number of factors may cause actual future circumstances, results, conditions, actions or events to differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements and the assumptions underlying the forward-looking statements.
Assumptions and analysis about the performance of TerraVest as a whole and its business segments, the markets in which the business segments compete and the prospects and values of the business segments are considered in setting the business plan for TerraVest, plans and/or ability to pay dividends, outlook for operations, financial position, results and cash flows, other plans and objectives and in making related forward-looking statements. Such assumptions include, without limitation, demand for products and services of the business segments in respect of the Canadian and other markets in which the businesses are active will be stable, and that input costs to business segments do not vary significantly from levels experienced historically. Should any of these factors or assumptions vary, actual results may differ materially from the forward-looking statements.Back