December 5, 2017
Houston-based Civeo Corp., which specializes in housing for workforce needs and mancamps says it’s buying the Canadian company Noralta Lodge Ltd. for $367 million.
The deal calls for $210 million in cash and the issuance of more than 32 million Civeo common shares, plus options to buy more shares after it closes.
The two are among the biggest providers of workforce accommodations in northern Canada’s oil sands region.
The merger is said to result in savings of $10 million annually by 2019 through operational efficiencies for the two companies.
Lower oil prices over the past three years have dried up capital availability to build new oilsands and infrastructure projects, leading to high vacancy rates in the dozens of workcamps or lodges that surround Fort McMurray, Alta, according to Canada’s GlobalNews.
Notralta has continuing workforce service contracts with two oil sands producers.