Vancouver-based Western One Equity Income Fund (TSX:WEQ.UN) has signed a letter of intent to purchase the assets of a Calgary-based aerial and material-handling equipment business for $13.5 million.
The target business has operations in central and southern Alberta and operates a fleet of more than 450 aerial and material-handling machines. Western One said the business earns approximately $3.15 million in earnings before income tax, depreciation and amortization.
Funding for the deal will come primarily from Western One's existing cash and debt facilities and is expected to close sometime in March 2010, subject to due diligence and other customary closing conditions.
Western One's unit price range during the past week: between $4.30 and $4.70; 52-week high: $4.89; 52-week low: $3.05.