Canadian transport vehicle conglomerate, TerraVest Industries, has expanded its North American operations with the acquisition of EnTrans International.
EnTrans is a manufacturer of tank trailers, heavy haul trailers and LPG transportation equipment under the Heil Trailer, Polar Tank Trailer, Kalyn Siebert and Jarco brands.
EnTrans is headquartered in Athens Tennessee, with additional manufacturing operations in Minnesota, Texas, Mexico, and Thailand. It serves mission-critical sectors, including petroleum, chemical, food-grade and cryogenic transport and has a reputation for engineering excellence.
EnTrans was acquired for $546 million USD (€505 million) at closing, plus contingent earn-out consideration based on the future financial performance of EnTrans of up to $46 million USD, in the 12-month period after the date of acquisition.
The purchase is TerraVest’s largest acquisition to date, with the purchase price representing a multiple of about 7.0 X to Entrans’ trailing twelve-month EBITDA after rent expenses.
In welcoming the EnTrans employees and management, TerraVest CEO, Dustin Haw, said TerraVest was looking forward to their continuing commitment and dedication to their customers.
“EnTrans is a very strategic fit for TerraVest, with the broadest and most reputable product suite in the industry, and a world-class manufacturing footprint,” said Haw.
“Together with Advance Engineered Products and our existing compressed gas transportation product offering, TerraVest is a market-leader in the North American tank trailer industry.
“This acquisition is transformational for TerraVest providing multiple growth opportunities for the combined company and I am very excited to work with Ryan Rockafellow and the rest of the EnTrans management team as they grow the business.”
Ryan Rockafellow, CEO of EnTrans, said: “EnTrans International has built a strong reputation by delivering high-performance solutions to customers across the world.
“This partnership allows us to build on that success by expanding our capabilities, growing our product offerings and strengthening our commitment to delivering industry-leading transportation solutions.”
TerraVest’s reasoning behind the purchase was multi-faceted including EnTrans being a well-established market-leading manufacturer with long standing brand recognition in a mature niche industry with diversified end-markets; possessing high quality, young management team and highly complementary product lines that will allow for cross-selling opportunities across North America. EnTrans was also seen as possessing world-class manufacturing facilities with excess capacity for TerraVest to leverage.
To fund the EnTrans acquisition, TerraVest amended and restated its existing credit facility with a syndicate of lenders led by Desjardins Group acting as sole lead arranger, sole bookrunner and administrative agent.
Its credit facility now consists of a $800 million CAD (€514 million) revolving credit facility maturing in three years, a $200 million CAD (€128.5 million) term loan and two $100 million CAD (€64.22 million) term loans secured by TerraVest Industries Inc. and its wholly owned subsidiaries.
TerraVest Executive Chairman, Charles Pellerin, said: “I would like to thank Desjardins Group for their continued support and commitment to our business. They have played an instrumental part of our growth over the years, and we are looking forward to future growth with them and other lenders in our syndicate.
“I would like to welcome Ryan Rockafellow and the entire team at EnTrans. They are a young and talented group that share a cultural fit with TerraVest and a desire to grow their business. I am looking forward to working with them.”
In other news, Heil Trailer Asia is poised for growth.
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