Secure Energy to buy oilfield waste disposal firm Tervita

Canada’s Secure Energy Services has agreed to purchased oilfield waste disposal firm Tervita in an all-stock deal valued at C$478m ($378.1m).

Secure will offer 1.2757 common shares for each Tervita share.

The deal is expected to value the combined midstream and environmental solutions business at around C$2.3bn ($1.81bn).

The combined entity will operate under the brand name Secure and headquartered in Calgary, Alberta.

Upon completion of the deal, Secure shareholders will own a 52% interest in the new company while the remaining 48% stake will be held by Tervita shareholders.

Secure chairman, president, and CEO Rene Amirault said: “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, optimise existing infrastructure assets and operations and to drive greater discretionary free cash flow to the bottom line.”

With highly complementary midstream infrastructure asset base, the combined company is expected to provide enhanced free cash flow generation and annual integration cost savings of C$75m ($59.3m).

Tervita president and CEO John Cooper said: “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.”