Stuart Olson to buy Studon Electric & ControlsStaff writer ▼ | November 28, 2014
Stuart Olson signed a definitive agreement to acquire all of the issued and outstanding common shares of Studon Electric & Controls.
Acquisition Electrical and instrumentation services provider
The company employs between 500 and 1,000 highly skilled electricians and instrumentation trades people at any given time. For the 12-month period ending November 30, 2014, Studon is expected to generate revenue of approximately $151.5 million and Normalized EBITDA of approximately $16.7 million.
The purchase price of approximately $76.2 million which is based on Studon's trailing 12-month EBITDA as at November 30, 2014 and subject to adjustment, consists of an equity purchase price of $65.7 million plus the assumption of net debt and a working capital adjustment.
Ten percent of the Purchase Price will be payable through the issuance of approximately 1.1 million Common Shares of Stuart Olson at a deemed price of $7.05 per share. The Purchase Price may be increased by a maximum of $25.8 million through earn-out payments over the next three years.
The earn-out payments are based on Studon's annual EBITDA exceeding a threshold of approximately $16 million, with the threshold being increased if Studon's prior year EBITDA is below $16.0 million.
The board of directors of Stuart Olson has unanimously approved the Transaction. ■