Willbros Canada Announces Purchase of Amec Canadian Pipeline Contractor Midwest Management (1987) Limited
HOUSTON, TEXAS – June 5, 2007Willbros Group, Inc. (NYSE: WG) announced today
that one of its subsidiary companies has entered into a Share Purchase Agreement with
AMEC to acquire all of the shares of Midwest Management (1987) Limited (“Midwest”), a
Canadian pipeline and facilities construction company, for approximately $17.5 million
(C$18.5 million) plus working capital of approximately $3.3 million (C$3.5 million). Midwest,
together with its wholly owned subsidiaries, Midwest Pipeline Rental Inc. and Midwest
General Contractors Ltd., offers a complete range of services, including cross country
pipeline construction, rehabilitation and maintenance, water crossings installation and
replacement, and facilities fabrication. Closing of this transaction, which is subject to
regulatory approval pursuant to the Competition Act (Canada) and other typical closing
conditions, is expected to take place in the late second quarter or early third quarter of
2007.
Randy Harl, President and Chief Executive Officer of Willbros, commented, “This
acquisition provides substantial opportunities for Willbros to participate in large diameter
pipeline projects related to the development of the Canadian oil sands and natural gas
reserves expected during the next several years. The additional capabilities of a mainline
pipeline construction entity in Canada will complement Willbros’ traditional Canadian
activities which include providing maintenance, capital projects and modular fabrication
services to the oil sands developments. With the addition of Midwest, we will now have in
WILLBROS GROUP, INC.
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Canada a cross-country pipeline construction company with experience, systems,
equipment and corporate identity bolstered by the global resume of Willbros. The resultant
organization can offer pipeline construction and project logistics experience unmatched by
any competitor in Canada.”
Crown Capital Partners Inc. acted as financial advisor to Willbros in this transaction.
Willbros Group, Inc. is an independent contractor serving the oil, gas and power industries,
providing engineering and construction services to industry and government entities
worldwide. For more information on Willbros, please visit our web site at
www.willbros.com.
AMEC is an international project management and services company that designs, delivers
and supports client assets for customers across the public and private sectors. AMEC
employs more than 20,000 people working from a network of offices throughout the U.K.,
U.S. and Canada, as well as regional offices and projects worldwide. AMEC shares are
traded on the London Stock Exchange where the company is listed in the Support Services
Sector (LSE: AMEC:L).
This announcement contains forward-looking statements. All statements, other than statements of historical facts, which
address activities, events or developments the Company expects or anticipates will or may occur in the future, are
forward-looking statements. A number of risks and uncertainties could cause actual results to differ materially from these
statements, including those discussed above and such things as the possible losses arising from the discontinuation of
operations and the sale of the Nigeria assets; fines and penalties by government agencies; the outcome of the current
Securities and Exchange Commission, Office of Foreign Assets Control and Department of Justice investigations; the
potential for additional investigations; the identification of one or more other issues that require restatement of one or
more prior period financial statements; the existence of material weaknesses in internal controls over financial reporting;
availability of quality management; availability and terms of capital; changes in, or the failure to comply with, government
regulations; ability to remain in compliance with, or obtain waivers under, the Company's loan agreements and indentures;
the promulgation, application, and interpretation of environmental laws and regulations; future E&P capital expenditures;
oil, gas, gas liquids and power prices and demand; the amount and location of planned pipelines; the effective tax rates of
the different countries where the work is being conducted; development trends of the oil, gas and power industries;
changes in the political and economic environment of the countries in which the Company has operations; as well as other
risk factors described from time to time in the Company's documents and reports filed with the SEC. The Company
assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future
events or otherwise.
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