Logistec Corporation, a marine and environmental services provider, says it has acquired 51% of the shares of FER-PAL Construction Ltd., a trenchless technology company that offers complete water main rehabilitation solutions, for an aggregate purchase price of $49.5 million, subject to adjustments.
Established in 1986 and based in Toronto, FER-PAL specializes in water main rehabilitation projects utilizing trenchless technologies of all types and sizes for municipalities in Canada and the United States.
FER-PAL has enjoyed a longstanding relationship with Sanexen Environmental Services Inc., a subsidiary of Logistec, which has developed the proprietary technology for the trenchless rehabilitation of water mains, commercialized under the name Aqua-Pipe. For the year ended December 31, 2016, FER-PAL generated revenues of $97.4 million and profit attributable to owners of $8.2 million.
“We are very proud to have cemented our relationship with FER-PAL and its dynamic management team,” said Logistec Corp. president and CEO Madeleine Paquin. “Shaun McKaigue and his colleagues have built tremendous expertise and know-how in the water main rehabilitation business and together, we are confident to have the best team to successfully expand our footprint throughout North America,” she said in a statement.
FER-PAL’s management team, including its president, Shaun McKaigue, vice-president, project management, Francesco Garcea, and vice-president, operations, Gerald Ramsay, will continue to lead FER-PAL in their current roles following the transaction.
As part of the transaction, Sanexen and FER-PAL have extended the terms of their contractual relationship, which include exclusivity rights in favour of FER-PAL to market and promote Sanexen’s structural liner products in several Canadian provinces and U.S. states.