CALGARY — Stuart Olson Inc. has announced that it has completed the sale of Broda Construction Inc. to TriWest Capital Partners and senior management of Broda for gross cash proceeds of $39 million.
Broda is a heavy construction company specializing in aggregate processing, earthwork, civil construction, and concrete production. Stuart Olson acquired Broda in 2010. Net proceeds of the sale will initially be used to repay outstanding indebtedness under the company’s revolving credit facility. The transaction closed on Sept. 1 and is subject to normal and customary post-closing balance sheet adjustments, explained a company statement.
Stuart Olson expects its third quarter 2014 financial results to include a non-cash investment loss related to the sale of Broda of between $19 and $21 million. This loss will be reflected in discontinued operations. The exclusion of Broda’s operating results going forward is not expected to have an impact on future reported consolidated net earnings or earnings per share, stated the company.
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