Aveda Transporation To Buy Precision Drilling' U.S. Rig Moving Assets For $24mln

(RTTNews) - Aveda Transportation and Energy Services Inc. (AVE.V), a provider of oilfield hauling services and equipment rentals to the energy industry, announced that, through its operating subsidiary in the U.S., it entered into an asset purchase agreement to buy Precision Drilling Corp.'s (PDS, PD.TO) U.S. rig moving assets. Aveda expects to acquire rig moving equipment, including bed/tandem trucks, tractors, trailers, loaders and cranes, for total consideration of US$24.0 million.

Aveda expects to close the Acquisition on July 1, 2014, subject to customary documentation and approvals.

Aveda noted that it expects these assets to be deployed sometime in the third quarter of 2014. A significant portion of Aveda's 2014 capital expenditure budget is being allocated to the acquisition. It intends to increase planned capital expenditures for 2014 with an eye to funding additional growth initiatives and reducing the Company's third party costs.