Business briefs – August 18

Westridge Cabinets Ltd. has acquired a Saskatchewan kitchen cabinet manufacturer. Red Deer-based Westridge announced on Tuesday that it has purchased Classic Woodcraft Ltd. It said in a release that the deal closed on June 30.

Westridge buys Classic Woodcraft

Westridge Cabinets Ltd. has acquired a Saskatchewan kitchen cabinet manufacturer.

Red Deer-based Westridge announced on Tuesday that it has purchased Classic Woodcraft Ltd. It said in a release that the deal closed on June 30.

Classic provides cabinetry products to the new home and renovation markets. Its showroom is in Saskatoon.

“The acquisition of Classic will strengthen our position as one of the leading cabinet manufacturers in Western Canada and provide us with a strong foothold in the growing Saskatchewan market,” said Ron Goss, CEO of Westridge.

Founded in 1983 by Gary Gant, Westridge employs about 300 people and is Alberta’s largest fully-integrated cabinet manufacturer. It operates out of premises in Gasoline Alley and also has outlets in Edmonton, Calgary and Lethbridge.

Westridge was purchased by Signal Hill Equity Partners of Toronto in March of this year. At that time, an official with Westridge said the sale should help the company expand across Western Canada.

“Since our investment in Westridge, we have seen the business grow considerably, thanks to the hard work and commitment of its employees,” said James Johnson, managing partner of Signal Hill, in Tuesday’s release.


CWC Well Services improves revenue, earnings in Q2

CWC Well Services Corp. (TSXV: CWC) posted a strong second quarter, with improved revenues and earnings over 2010.

The oilfield service company, which was previously known as Central Alberta Well Services Corp., had revenues of $13 million for the three months ended June 30. That’s up 40 per cent from $9.3 million for the same period in 2010.

The company still recorded a net loss of $3 million in the quarter, but that was an eight per cent improvement over a $3.2 million loss in 2010. Both periods resulted in a per-share loss of two cents.

CWC said in a release that the higher numbers reflected overall activity levels and better pricing. It pointed out that the second quarter numbers were down from the first quarter due largely to the seasonality of the industry.

In June, CWC bought all of the assets and ongoing operations of Trinidad Well Services, the service rig division of Trinidad Drilling Ltd., for $38 million. Those assets consisted of 22 service rigs, and the purchase boosted CWC’s service rig count to 63 active rigs — making it the sixth largest service rig provider in Western Canada.

CWC’s services include service rigs, coil tubing, snubbing, nitrogen and well testing. Its corporate office is in Calgary.


Gap between residential real estate activity in 2011 and 2010 still growing

The gap between residential real estate activity in 2011 and 2010 continues to increase in Central Alberta, with July marking the third consecutive month that year-over-year home sales in the region were up.

Multiple Listing Service statistics provided by the Central Alberta Realtors Association indicate that 359 homes were sold in the area last month, up 27 per cent from 279 in July 2010. The tally for Red Deer was 150, up from 126 a year ago; while the surrounding region covered by the association produced 209 sales last month, as compared with 153 a year earlier.

After a slow start to the year, cumulative residential sales in Red Deer and area are now up to 2,279, which is nine per cent ahead of the seven-month total of 2,099 in 2010. The average July selling price in Red Deer was $291,229, while in the surrounding area it was $244,101. That compares with $326,077 in the city and $258,090 outside last year. However, these averages include homes of all types. New MLS listings in Red Deer and the area outside the city are down from 2010, both on a monthly and year-to-date basis.