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ClearStream announces the acquisition of AFX Materials and Fabrication Ltd.

CALGARY, Alberta, Sept. 24, 2018 (GLOBE NEWSWIRE) -- ClearStream Energy Services Inc. (“ClearStream” or the “Company”) (TSX: CSM) is pleased to announce the acquisition of AFX Materials and Fabrication Ltd. (“AFX”) for total consideration of up to $2.5 million. AFX is a specialized manufacturer of wear resistant chromium carbide overlay and structural steel fabrication with operations in Alberta.

The acquisition is expected to increase the manufacturing capacity of ClearStream’s existing Wear Technology business by 30%. Demand for Wear Technology services remains strong and this acquisition will allow ClearStream to enhance the client service offering of our Wear Technology division through additional capacity and manufacturing efficiencies. The acquisition will also provide ClearStream with access to increased abrasion and corrosion resistant market segments as well as AFX’s existing client base.

ClearStream’s CEO Yves Paletta commented: “We are excited to welcome AFX and its employees to the ClearStream team. The acquisition of AFX marks a shift in focus for ClearStream to strategic growth initiatives that will progress the Company to the next level. This acquisition is the first step in progressing our strategy to create stakeholder value through managed growth initiatives, both organically and through acquisitions.”

About ClearStream Energy Services Inc.
With a legacy of excellence and experience stretching back more than 50 years, ClearStream provides solutions to the Energy and Industrial markets including: Oil & Gas, Petrochemical, Mining, Power, Agriculture, Forestry, Infrastructure and Water Treatment. With offices strategically located across Canada and over 3,000 employees, we provide maintenance, construction and environmental services that keep our clients moving forward. For more information about ClearStream, please visit www.ClearStreamEnergy.ca.

Forward Looking Statement
Certain information included in this presentation may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue” or the negative of these terms or other similar expressions concerning matters that are not historical facts. Forward-looking information in this press release includes:

  • The expected increase in capacity for ClearStream’s existing Wear Technology business;
  • The expectation that this acquisition will allow ClearStream to meets the needs of its Wear Technology clients through additional capacity and manufacturing efficiencies;
  • The expectation that this acquisition will provide ClearStream with access to increased abrasion and corrosion resistant market segments as well as AFX’s existing client base.

Forward-looking information involves significant risks and uncertainties.  A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking information including risks related to integration risk, conditions of capital markets, economic conditions, dependence of key personnel, interest rates, regulatory change, ability to meet working capital requirements and capital expenditure needs, factors relating to the weather and availability of labour.  These factors should not be considered exhaustive.  Risks and uncertainties about ClearStream’s business are more fully discussed in ClearStream’s disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com.  In formulating forward-looking information herein, management as assumed that business and economic conditions affecting ClearStream will continue substantially in the ordinary course, including without limitation with respect to general levels of economic activity, regulations, taxes and interest rates.

Although the forward-looking information is based on what management of ClearStream consider to be reasonable assumptions based on information currently available to it, there can be no assurance that actual events or results will be consistent with this forward-looking information, and management’s assumptions may prove to be incorrect.

This forward-looking information is made as of the date of this release, and ClearStream does not assume any obligation to update or revise it to reflect new events or circumstances except as required by law. Undue reliance should not be placed on forward-looking information. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes.

For further information, please contact:

Yves Paletta
Chief Executive Officer
ClearStream Energy Services Inc.
ypaletta@clearstreamenergy.ca
 

Gary Summach
Chief Financial Officer
ClearStream Energy Services Inc.
gsummach@clearstreamenergy.ca

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