Canadian midstream company Secure Energy Services and energy and industrial waste service provider Tervita have merged in an all-share transaction.
Secure has a network of midstream processing and terminalling facilities, crude oil and water pipelines, and rail transport terminals in western Canada, and North Dakota and Oklahoma in the US, serving upstream oil and natural gas companies. Tervita provides waste and environmental management solutions to the energy, industrial, and natural resource sectors in western Canada. The companies say that the merger will create a stronger midstream infrastructure and environmental solutions business with expanded services for all customers.
The combined company, which will be known as Secure, has a value of C$2.3 billion (€1.53 billion), with Secure and Tervita shareholders owning approximately 52% and 48% respectively. The new Secure will retain its headquarters in Calgary, Canada.
‘Together, our highly talented teams will be better positioned to serve our customers, optimise existing infrastructure assets and operations and to drive greater discretionary free cash flow to the bottom line. We look forward to working with the Tervita board of directors and team, and we are excited about the value creation opportunities of this transaction for all stakeholders,’ says Rene Amirault, chairman, president and CEO of Secure.