Sterling completes Entrec crane acquisition
Canadian crane and heavy haulage group Entrec has completed the sale of its Canadian crane business to Sterling Crane, part of Marmon Crane Services, which is owned by Berkshire Hathaway.
Sterling has paid $21.2 million in cash, although an undefined percentage will be held back. Entrec will use the proceeds from the sale to reduce its long term debt.
Entrec acquired many of the assets in a string of acquisitions between 2012 and 2016, including: Mains crane group of Nisku, Alberta
, for $56.2 million in 2012, GT's Crane and Transportation Services
of Grande Prairie, Alberta for $44.5 million plus share in 2013 and HighMark Crane of Edmonton
for $3.5 million in 2016. The acquisitions included extensive haulage operations which Entrec is retaining.
Going forward Entrec will focus its efforts on its crane and heavy transportation services in the USA through its locations in North Dakota, Colorado, Texas and Wyoming. Its oilfield transportation and picker truck services in Alberta and North-east British Columbia through its investment in ENT Oilfield Group and Capstan Hauling Ltd, along with its heavy haulage services in Western Canada.
Entrec chief executive John Stevens said: “This sale is a nice strategic move for Entrec. Through this sale, we will be able to significantly reduce our long term debt. In addition, we intend to partner with Sterling Crane to be a preferred supplier of heavy haul transportation services to Sterling Crane in Canada and utilise Sterling Crane as a preferred supplier of cranes services to Entrec in the future for our Canadian operations.”
The move takes the Marmon Crane Services mobile crane fleet to more than 1,200 units.