Commercial Solutions, Edmonton, Alberta, has completed the acquisition of Rig Products Inc., an Alberta-based oil and gas equipment distribution company, for $8 million. The acquisition will add approximately $15 million in annual revenues to Commercial and is expected to be accretive to earnings.
It also further strengthens Commercial’s depth of inside and outside sales staff with strong technical knowledge in the energy industry, an important requirement for growth in labour tight Alberta.
Rig caters to all facets of the oilfield from drilling, well testing, well servicing, plant turnarounds to fabrication. “The acquisition of Rig Products will diversify our Oilfield Parts and Supplies segment, as Commercial will increase its exposure to the natural gas industry.” noted Jim Barker, president and CEO of Commercial. “We also anticipate to build product synergies on the Rig Products locations not currently serviced by the other divisions within the Oilfield Parts and Supplies segment.”
Commercial is an independent industrial distributor with 30 service centers and 300 employees across Canada. Commercial offers more than 160,000 items to MRO and OEM customers.
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