Mitcham Industries Announces Agreement to Acquire Absolute Equipment Solutions
February 22 2010 - 7:00AM
PR Newswire (US)
HUNTSVILLE, Texas, Feb. 22 /PRNewswire-FirstCall/ -- Mitcham
Industries, Inc. (NASDAQ:MIND) announced today that its subsidiary,
Mitcham Canada, Ltd., has entered into a definitive agreement with
the shareholders of Absolute Equipment Solutions, Inc. ("AES") of
Calgary, Alberta to acquire all of the capital stock of AES for a
total purchase price of Cdn $4.0 million. Under the terms of the
agreement, Mitcham Canada, Ltd. will pay Cdn $2.2 million at the
time of closing the acquisition, Cdn $1.5 million in two-year, 6%
notes and Cdn $0.3 million upon the expiration of certain indemnity
periods. Mitcham Industries, Inc. will guarantee the obligations of
Mitcham Canada, Ltd. under the agreement. Closing of the
transaction, which is subject to the completion of certain
ancillary documentation and other customary conditions, is expected
to occur in early March 2010. Founded in 2005 as a partnership
between a helicopter operator and a seismic field supervisor, AES
is now the leading provider of equipment used for the deployment
and retrieval of seismic recording systems by helicopter in the
seismic industry. It manufactures leases and sells "heli-pickers"
and associated equipment, such as ground assemblies and heli-bags.
AES is the exclusive source for heli-pickers including the
"Automatic Bag Runner", the "Mr. T's Universal" and the "All
Terrain Runner" systems. In addition to the heli-picker products,
AES leases and sells helicopter navigation systems for seismic
operations worldwide. Brett Cameron, the managing partner of AES,
will remain with the company and join Mitcham's management team.
Bill Mitcham, the President and CEO of Mitcham, said, "We believe
the AES products are a natural extension of our lease pool of
seismic equipment and will allow us to provide our customers a more
complete solution for their equipment needs. Our existing
world-wide network of operating locations and customer
relationships will provide a channel for increased business for the
AES product line. We are also very pleased to have Brett Cameron
join us. Brett is a seasoned veteran of the seismic business and
will be a great addition to our team." Mitcham Industries, Inc., a
geophysical equipment supplier, offers for lease or sale, new and
"experienced" seismic equipment to the oil and gas industry,
seismic contractors, environmental agencies, government agencies
and universities. Headquartered in Texas, with sales and services
offices in Calgary, Canada; Brisbane, Australia; Singapore; Ufa,
Bashkortostan, Russia; Bogota, Colombia; Lima, Peru and the United
Kingdom and with associates throughout Europe, South America and
Asia, Mitcham conducts operations on a global scale and is the
largest independent exploration equipment lessor in the industry.
This press release includes forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934 and
Section 27A of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical facts
included herein, including statements regarding the Company's
future financial position and results of operations, planned
capital expenditures, the Company's business strategy and other
plans for future expansion, the future mix of revenues and
business, future demand for the Company's services and general
conditions in the energy industry in general and seismic service
industry, are forward-looking statements. While management believes
that these forward-looking statements are reasonable when and as
made, actual results may differ materially from such
forward-looking statements. Important factors that could cause or
contribute to such differences include possible decline in demand
for seismic data and our services; the effect of recent declines in
oil and natural gas prices on exploration activity; the effect of
uncertainty in financial markets on our customers' and our ability
to obtain financing; loss of significant customers; defaults by
customers on amounts due us; possible impairment of long-lived
assets; risks associated with our manufacturing operations; foreign
currency exchange risk; and other factors that are disclosed in the
Company's filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K and available from the Company
without charge. Readers are cautioned to not place undue reliance
on forward-looking statements which speak only as of the date of
this release and the Company undertakes no duty to update or revise
any forward-looking statement whether as a result of new
information, future events or otherwise. Contacts: Billy F.
Mitcham, Jr., President & CEO Mitcham Industries, Inc.
936-291-2277 Jack Lascar / Karen Roan Dennard Rupp Gray &
Easterly (DRG&E) 713-529-6600 DATASOURCE: Mitcham Industries,
Inc. CONTACT: Billy F. Mitcham, Jr., President & CEO of Mitcham
Industries, Inc., +1-936-291-2277; or Jack Lascar / Karen Roan,
both of Dennard Rupp Gray & Easterly (DRG&E),
+1-713-529-6600, for Mitcham Industries, Inc. Web Site:
http://www.mitchamindustries.com/
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