Canadian private investment firm Hillcore Group has acquired Treeline Well Services Inc, a Calgary-based provider of oil and gas well service rigs.
Terms weren’t released for the deal, which saw Hillcore partner with the company’s senior management team, including President Dan Bryson.
Founded in 1997, Treeline supplies service rigs to energy companies operating primarily in the northern regions of Alberta and British Columbia. It currently has a fleet of 23 rigs.
Hillcore said it will work with Treeline as it looks to build its fleet through an aggressive capital expenditure and acquisition plan.
Hillcore Group Completes Acquisition of Treeline Well Services
July 31, 2019, Calgary, Alberta – Hillcore Group (Hillcore), is pleased to announce the acquisition of Treeline Well Services Inc.
Founded in 1997 and headquartered in Calgary, Alberta, Treeline is a best-in-class provider of oil and gas well services to energy companies operating across Western Canada. Treeline operates a modern fleet of 23 new generation (post-2000) service rigs that includes 17 high hook load doubles.
Treeline is currently the largest private service rig provider in Canada and is focused on two core areas, N.W. Alberta/N.E. B.C. and the Thermal SAGD areas of N.E. Alberta. Their involvement in these two long-term growth markets has been instrumental in delivering unmatched performance over the recent period of reduced capital spending in the Western Canadian Sedimentary Basin. Treelines’ market position and mix of high spec SAGD and heavy hook-load doubles creates an ideal platform to grow through its top tier customer base as capital returns to the WCSB over the coming years. Treeline has continually invested in their company and unlike its competitors they are not abandoning the Canadian market.
Hillcore, which has partnered with Treelines’ existing senior management team on the acquisition, will ensure Treelines’ long-standing history of operational excellence, safety, and quality continues. Hillcore will work with the management team as it looks to build its service fleet to support its growing customer base through an aggressive capital expenditure and acquisition plan.
Hillcore Chairman Russell Negus said, “We are excited to partner with such a great leadership team and an industry leader and we see tremendous opportunities to grow this platform.”
Treeline management believes strongly in the underlying fundamentals and long-term growth potential of these key Canadian resources. The Service Rig Industry in Canada has suffered over the past 10 years from lack of capital, both Hillcore and Treeline believe that is a key part of the investment thesis that will eventually lead to a robust recovery.
Treeline President Dan Bryson stated, “Management is thrilled to partner with the Hillcore Group and we look forward to executing on our growth plans taking Treeline to the next level.”
The transaction is effective July 26, 2019 and the new entity will operate under the name Treeline Well Services Limited Partnership.
The Hillcore Group
Hillcore Group is an active purchaser and operator of various businesses across Canada, with a focus on backing management buyouts.
The Hillcore Group is a leading independent Canadian investment and advisory firm. We invest predominantly in the life sciences, real estate, seniors living, financial, industrial and energy sectors. We have offices in Toronto, Vancouver, and Montreal. Through our various groups and portfolio companies we employ more than 3,000 people throughout Canada.
Entities under our management have an asset value in excess of $4.5 billion. Since 2005, we have completed acquisitions, directly or indirectly through our investment funds, with an aggregate asset value in excess of $8.5 billion.