By Adriano Marchese
Black Diamond Group is set to acquire remote accommodation and catering solution Royal Camp Services for 165 million Canadian dollars ($119.7 million) as it looks to tap into Canada's infrastructure projects.
The Canadian specialty rentals and industrial services company said Monday that it entered into a definitive share purchase agreement to acquire all of the issued and outstanding shares of Royal Camp Services.
Black Diamond will pay either in cash or in its stock up to 4 million common shares a set price of C$12.08 apiece. The cash portion of the acquisition will be drawn from its credit facility.
The acquisition is expected to be accretive to Black Diamond, with valuation based on the mid-point of a three-year adjusted earnings before interest, taxes, depreciation and amortization range of between C$31 million and C$41 million, excluding synergies.
The new combined company is expected to create an integrated workforce accommodations and catering business with nearly 12,000 rooms of capacity across Canada operated by over 600 employees.
Black Diamond said the two businesses are highly complementary in terms of service offering, end markets and geographies served.
"We are excited to bring together the strengths of the Black Diamond and Royal platforms, especially as Canada focuses its efforts on expediting major nation building projects, which is expected to drive increased activity for workforce accommodation services," said Chairman and Chief Executive Trevor Haynes.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
September 22, 2025 07:01 ET (11:01 GMT)
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