Western Canadian environmental service companies Newalta Corporation and Tervita Corporation have merged their businesses to create a leading publicly traded energy-focused environmental solutions provider in Canada, providing waste processing, treating, recycling and disposal services to customers in the oil and gas, mining and industrial sectors.
The merger will place the now publicly traded companies under the name Tervita Corporation. The new joint company will provide waste processing, treating, recycling and disposal services, with 115 operating locations, approximately 2,000 employees and approximately 1,000 customers.
“Tervita is very pleased that Newalta has determined that a transaction with Tervita is its most attractive option for their shareholders,” said Grant Billing, the Chairman of Tervita, in a statement. “We are looking forward to the opportunity to create further value for all stakeholders through this strategic combination.”
In a statement, Tervita said its has obtained fully committed bridge financings which, together with Tervita’s other available funding sources, are projected to be sufficient to fund all of the refinancing requirements relating to Newalta’s existing debt that will arise on, or shortly after, closing.
“We are pleased to announce this milestone transaction, which offers our shareholders a meaningful ownership position in a significantly larger entity that is the premier Canadian energy environmental solutions provider,” announced John Barkhouse, President and CEO of Newalta. “Newalta shareholders will have the opportunity to participate and benefit in the success and growth of the combined businesses. Additionally, this transaction significantly improves our balance sheet, and the synergies and growth opportunities provide significant potential value creation for Newalta shareholders. We strongly believe that this combination is the most attractive path forward for Newalta, and we are committed to making the merger and ensuing integration a success.”