Toromont Industries and Enerflex Systems Income Fund this week said they have entered into a support agreement after Toromont increased its offer to acquire Enerflex to CA $14.25 per unit. The maximum amount of cash to be paid by Toromont will be either $14.25 per unit or 0.538 of a common share of Toromont plus $0.05 in cash per unit.
The revised offer represents a premium of 42 percent to the closing price of Enerflex units on Oct. 16, the day Toromont announced its proposal to acquire Enerflex.
Toronto-based Toromont Industries has two segments, the Equipment Group, including one of North America’s largest Caterpillar dealerships and its rental operations Battlefield Equipment; and the Compression Group. Enerflex, based in Calgary, Alberta, is a leading supplier of products and services to the global oil and gas production industry.