Entrec gets Mains-powered boost into crane rental

Mains owns a fleet of 60 cranes and has locations across Canada and in North Dakota, USA.

Formerly known as Schell Equipment, the 17-year-old Alberta-based firm has issued a letter of intent naming fellow Canadian firm Mains Group as an acquisition target, and expects the firm to add CAD13m to CAD14m to its earnings before interest, taxes, depreciation or amortization during 2012. Entrec will pay over CAD56m, minus Mains Groups outstanding debts.

Also based in Alberta, Mains Group consists of five companies: Mains Crane and Rigging and Mains Transportation in Nisku, Alberta; US subsidiary Mains Crane USA; equipment maintenance and repair firm Independent Crane and Equipment; and Nisku Engineering.

Along with it’s fleet of heavy transport equipment Entrec currently has a small fleet of boom trucks offering lifting services, which would be substantially boosted by the addition of Mains Group’s fleet of 60 cranes. These include all terrains, rough-terrains, crawler cranes, carry decks and boom trucks.

In addition to Mains Group’s 85 employees, the acquisition would add CAD30m-worth of heavy haulage equipment, including 42 lines of hydraulic platform trailers, ten power units and around 40 conventional heavy haul trailers to Entrec’s operations.

Entrec chairman and CEO, Rod Marlin, said: “Our expansion into the crane services market is a key element of our overall growth strategy. Crane services are very complimentary to heavy haul transportation and allow our customers to obtain both their heavy haul and lifting needs from one vendor.”

“The Mains Group is a very well respected company in the crane and heavy haul transportation sector. This acquisition will represent a significant step forward for Entrec in becoming a leading provider of integrated crane and heavy haul solutions to our customers throughout North America.”

Both Mains Crane and Rigging and Mains Crane USA serve a number of sectors including mining, renewable energy, infrastructure, petrochemical, forestry and the pulp and paper industry.

Entrec expects an increase in demand from projects related to the Alberta Oil Sands to significantly boost the group’s existing earnings. Also, prior to signing the deal, Entrec plans to renegotiate a substantial services contract with one of Mains Group’s largest existing clients. This is expected to net the company around CAD100m over a proposed five-year term.

Mains Group Chairwoman Carolyn Mains commented: “We believe the acquisition by Entrec of the Mains Group is an excellent fit for our employees and our customers. We feel that Entrec will continue to provide our customers with outstanding service and empower our employees through employee ownership.

“Entrec clearly shares the same values and principals that have driven our company since our establishment in 1994 by my husband Craig Mains (1950-2010).”

The deal is expected to be formalised and completed by 4th June this year.