An Innisfail company that’s operated in Central Alberta for more than 50 years has been sold.
TerraVest Capital Inc. (TSX: TVK) announced on Tuesday that it’s struck a deal through a wholly-owned subsidiary to buy NWP Industries Inc. The sale is expected to close this month for a purchase price of $12.6 million.
NWP Industries, which employs about 125 and operates out of an approximately 60,000-square-foot fabrication facility at 4017 60th Ave. in Innisfail, manufactures oil and gas processing equipment. It was founded in 1962 as North West Pipe & Supply Co. Ltd., and purchased soon after by Mike Chwelos.
Chwelos’s daughter Debi DeBelser eventually took over the family business, with her son Mitch DeBelser stepping in as the new president just over a year ago.
TerraVest is based in Vegreville. Its existing operations include RJV Gas Field Services, which provides wellhead processing equipment for the natural gas industry in Western Canada.
“NWP and RJV Gas Field Services offer some of the best oil and gas processing equipment in the country,” said Charles Pellerin, executive chairman of TerraVest.
“Their products are similar in nature and the companies will now work together to complement each other’s strengths.”
NWP Industries will continue to operate under that name, with Mitch DeBelser and the existing management remaining.
“It’ll be business as usual — just focus on growth and getting bigger,” said DeBelser, adding that TerraVest’s resources should help in this regard.
“TerraVest, being public, certainly has deeper pockets than what we would have had access to.”
Although NWP Industries and RJV Gas Field Services will operate independent of each other, DeBelser said both could benefit from synergies related to buying power and best practices.
Originally based in Blackfalds, NWP Industries was among a group of companies that included NWP Trucking Corp., NWP Construction Ltd. and Northwest Pipe. Ltd. It relocated to Innisfail in 2005, with its other operations either sold or consolidated into NWP Industries.
A release said the purchase price will consist of $10 million cash and $2.6 million worth of TerraVest shares, to be released over a three-year period.
The sale remains subject to certain conditions, including approval by the Toronto Stock Exchange.
In addition to RJV Gas Field Services, TerraVest’s holdings include Gestion Jerico, a manufacturer of propane dispensers, pressure vessels, commercial and residential liquid containment units, and bulk propane trucks; and Diamond Energy Services, which performs well servicing in Saskatchewan.