ALBERTA

Secure Energy Services in deal to buy Target rentals for $40 million

06/04/2013 07:03 EDT | Updated 08/04/2013 05:12 EDT
CALGARY - Secure Energy Services Inc. (TSX:SES) and a subsidiary have announced plans to acquire Target Rentals Ltd., a privately held company based in Grande Prairie, Alta., that rents storage tanks to oil drillers.

Secure and Marquis Alliance Energy Group Inc. are paying $40 million for Target, including assumed debt.

The deal is expected to close on or around July 2.

Target's main offering is its patented horizontal dual containment fluid storage tank system, which Secure says has numerous cost saving, safety and operational advantages over more traditional systems.

It has 340 tanks in its fleet, the largest in Western Canada.

Target will operate as a wholly owned subsidiary of Marquis, and its current management team will continue to run its day-to-day business.

"This acquisition allows us to provide a more complete service offering to customers at the back end of the drilling rig when it comes to the supply and handling of oil based drilling fluids," said George Wadsworth, executive vice president of Secure's drilling services division.

"We are delighted to welcome to Secure an experienced and innovative team that has designed, built and commercialized cutting edge oilfield technologies."

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