Horizon North Logistics Inc. Announces Acquisition of Moose Haven Lodge, Provides Update on Fort McMurray Strategy
Calgary, Alberta (January 8, 2018) – Horizon North Logistics Inc. (“Horizon North” or the “Corporation”) (TSX: HNL.TO) announced today that it has completed the acquisition of Moose Haven Lodge in Janvier, Alberta and has formed two new Aboriginal partnerships in the Fort McMurray, Alberta area. The acquisition and new partnerships are key components of the Corporation’s strategy with respect to opportunities in the Fort McMurray region.
Moose Haven Lodge Acquisition
Located 120 km south of Fort McMurray near the hamlet of Janvier, Moose Haven Lodge is a 288-bed open lodge servicing workforce accommodation needs in the Highway 881 corridor between Conklin, Alberta and Fort McMurray. The acquisition of Moose Haven Lodge is a key element of the Corporation’s newly signed partnership with Janvier Aboriginal Industrial Services Corp., a wholly owned entity of the Chipewyan Prairie Dene First Nation (“Chipewyan Prairie”). Both the acquisition and partnership position Horizon North to secure future contracts in the surrounding area.
The purchase price of Moose Haven Lodge is $14 million, payable in a mix of cash and Horizon North common shares.
“We have invested significantly in our industrial business park, with Moose Haven Lodge as a vital piece to its future development,” says Chief Vern Janvier of the Chipewyan Prairie Dene First Nation. “We are pleased that Horizon North purchased the lodge and joined with us to finalize our new camp and catering partnership. As partners, we look forward to generating new business opportunities in our territory which will benefit the Nation and all our members.”
“To win work in these areas, Horizon North and our customers believe strong relationships are required with the Aboriginal communities who call the regions home,” says Rod Graham, President and Chief Executive Officer of Horizon North. “Directly related to our relationship with Chipewyan Prairie, for example, we have already secured two significant operations contracts and believe there is potential to operate up to 10,000 beds within the Nation’s territory.”
Fort McMurray Strategy
Horizon North’s partnership to the south of Fort McMurray with the Chipewyan Prairie Dene First Nation coincides with another new Aboriginal partnership to the north of Fort McMurray with Acden Services Limited Partnership (“Acden”), a wholly owned entity of the Athabasca Chipewyan First Nation. These two new partnerships join 21 others which Horizon North maintains with Aboriginal communities in Canada, and represent further foundational elements of the Corporation’s strategy in the Fort McMurray area.
“This partnership is a significant one for Acden,” says Garry Flett, Acden’s President & Chief Executive Officer. “One of our leading priorities is to provide our clients with a diverse portfolio of services. Horizon North’s reputation for quality, integrity and cost effectiveness is a perfect fit. We welcome them to the Acden family.”
As a Progressive Aboriginal Relations (“PAR”) committed company, engagement with the Aboriginal communities in the areas where Horizon North operates is a key part of the Corporation’s social responsibility.
“When we look to the future with these two Aboriginal communities, as we do with all our partners,” says Rod Graham, “we seek ways in which we can jointly use our expertise in industrial services and modular solutions to build lasting economic value and quality of life for the families and individuals who call the region home. “
Adds Graham: “The reduction in oilsands activity is certainly well-documented. Less talked about, however, is that opportunities are still plentiful in the Fort McMurray area with the right partners. With our diverse offerings and our commitment to the communities we work with, Horizon North is well-positioned to leverage the potential in this region.”
About Horizon North
Horizon North is a publicly listed corporation (TSX: HNL.TO) providing a full range of industrial, commercial, and residential products and services. Our Industrial Services division supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. Our Modular Construction division integrates modern design concepts and technology with state of the art, off-site manufacturing processes; producing high quality building solutions for commercial and residential offerings including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers in numerous sectors, anywhere in Canada.
Additional information related to Horizon North, including the Corporation’s annual information form, press releases, financial statements and MD&A are available on SEDAR at www.sedar.com
For further information, please contact Rod Graham, President and Chief Executive Officer or Scott Matson, Senior Vice President Finance and Chief Financial Officer, 1600, 505 – 3rd Street S.W., Calgary, Alberta T2P 3E6; Telephone (403) 517 – 4654, Fax (403) 517 – 4678; website: www.horizonnorth.ca