Toromont Industries this week announced its board of directors has unanimously approved a proposal to spin off to its shareholders Enerflex Ltd., a supplier of natural gas production and processing equipment, as a separate, publicly traded company.
The spinoff is designed to enhance long-term value for the shareholders of Toromont by separating its businesses into two distinct public companies. Each will be better able to pursue independent strategies and opportunities for growth.
"We believe this transaction will provide compelling long-term value for our shareholders," said Robert Ogilvie, chairman of the board and CEO of Toromont. "Both companies will be leaders in their respective markets. This spinoff will position each for more robust growth and enhanced profitability."
"The combination of Enerflex with Toromont's legacy natural gas production and processing equipment business earlier in the year created a global leader," said Blair Goertzen, president of Enerflex. "Once this spinoff is complete we will be better equipped to compete in North American and international markets. As a public company, we will execute our growth strategy with a strong balance sheet and sharply focused management. Our ability to take advantage of growth opportunities is greatly enhanced as an independent entity."
After the spinoff, Toromont's operations will consist of Toromont CAT, one of the world's larger Caterpillar dealerships by revenue and geographic territory; Battlefield - The CAT Rental Store, an industry-leading rental operation; and CIMCO Refrigeration, Canada's largest supplier of industrial and recreational refrigeration equipment.
The transaction will see existing Toromont shareholders exchange each current Toromont share for shares in both the new Toromont and in Enerflex, which intends to apply for its own listing on the Toronto Stock Exchange.
Toromont Industries is headquartered in Toronto. Battlefield Equipment Rentals, Stoney Creek, Ontario, is No. 21 on the RER 100.