Edmonton, AB — Commercial Solutions Inc. has completed the acquisition of all the issued and outstanding shares of Impact Oilfield Supply Inc., an Alberta-based oil and gas equipment distribution company.
The acquisition of Impact will add approximately $15 million in annual revenues to Commercial and is expected to be accretive to earnings. It also strengthens Commercial’s oilfield supply product distribution division and adds strong new inside and outside sales staff as well as technical advice.
Principle products distributed by Impact are chain-drives, drilling equipment and supplies, mud pumps; oil well drilling equipment; safety equipment, and valves and fittings.
“I am very excited by the potential for synergies created by acquiring the profitable oil and gas equipment distributor in Commercial’s group of companies,” said James Barker, president of Commercial. “Impact is an exceptional fit for Commercial’s oil and gas division that will provide efficiencies to overall customer service and increased buying power.”
Henry Kilbach, who remains with Impact in the capacity of president, said, “We are motivated by the growth opportunities presented by this transaction and anticipate a high level of interaction between Impact and Commercial, particularly in the areas of purchasing and sales and marketing.”
The total purchase price was $6.6 million, which consists of $4.8 million in cash and $1.8 million by way of the issuance of 782,609 common shares. The acquisition also incorporates, over the next three years, certain purchase price adjustments.