Daseke Inc. announced that it has completed the acquisition of oil rig moving company Aveda Transportation and Energy Services.
Under terms of the agreement, Daseke paid C $0.90 (US $0.70) per share, or approximately $42.6 million, plus the payoff of $54.8 million in Aveda debt, net of cash. The consideration was comprised of approximately $27.3 million in cash and $15.3 million (1,612,979 shares) in Daseke stock. Equity represented approximately 16% of the total consideration. The transaction was financed with cash on hand, and all figures have been translated from Canadian dollars into U.S. dollars at an exchange rate of 0.78.
“Daseke’s two core principles are investing in great people and building an organization of scale,” said Don Daseke, chairman and chief executive officer of Daseke. “Aveda strongly builds upon these core principles and is an exceptional fit for our platform. Beyond the strategic rationale, this transaction also presents numerous synergies not contemplated in the purchase price. Aveda outsources up to 35% of its long-distance rig movers to other carriers, and we have the equipment to capture some of this revenue through our various operating companies. In addition to cross-selling, we have also identified other benefits of scale in the way of purchasing, fuel and insurance.”
“Joining the Daseke team makes our company stronger than ever,” said Ronnie Witherspoon, president and chief executive officer of Aveda. The benefits of scale will help us better serve our customers and is already empowering our employee base. Like Daseke, we believe in a people-first culture. A high-quality, passionate employee base is key to the execution of our business plan. We have that culture and so does Daseke, making this combination a perfect match and an exciting new chapter for our company.”