High Arctic Energy Services Inc (TSX:HWO) acquired Delta Rental Services Ltd. for CAD 7 million on December 28, 2023. The consideration includes CAD 3.43 million in cash paid at closing with the remaining CAD 3.57 million payable as 75% in cash and 25% in High Arctic common shares to the selling shareholders as an earn-out over three years, subject to achieving certain financial performance targets. Issuance of the common shares pursuant to the earn-out would be subject to regulatory approvals including the approval of the Toronto Stock Exchange. In its most recently completed financial year, Delta recorded over CAD 8 million in revenue. The total consideration represents a 3 ? 3.5x multiple of the Corporation?s estimated annual after-tax cash flow contribution from Delta. JD Morrical and the Delta team joins High Arctic.

High Arctic Energy Services Inc (TSX:HWO) completed the acquisition of Delta Rental Services Ltd. on December 28, 2023.