Dexterra Announces Sale of Space Rental Assets

Rhea-AI Summary

Dexterra Group announced the sale of 329 space rental units owned by Gitxaala Horizon North Services Partnership, a joint venture in which Dexterra holds a 49% stake. The sale price of $20.45 million aligns with the net book value of the assets. This strategic move allows Dexterra to manage its Energy Services assets proactively and aligns with its focus on Support Services. The transaction also enables Dexterra to pay down debt and optimize its asset portfolio. The Gitxaala First Nation partnership remains robust, and Dexterra looks forward to ongoing collaboration in the region.

Positive

• Sale of 329 space rental units for $20.45 million.
• Opportunity to pay down debt.
• Alignment with strategic focus on Support Services.

Negative

• Reduction in asset portfolio size.

Toronto, Ontario--(Newsfile Corp. - July 2, 2024) - Dexterra Group Inc. (TSX: DXT) ("Dexterra" or the "Company") announces the closing of an asset sale of 329 space rental units ("Assets"), which were owned by the Gitxaala Horizon North Services Limited Partnership (owned 49% by Dexterra) and servicing a major project in Kitimat. The purchase price of $20.45 million reflects the approximate net book value of the Assets.

This transaction allows Dexterra the opportunity to proactively manage its assets in the Energy Services business and is consistent with the Company's strategic focus on Support Services as well as the contracts associated with the major project approaching their completion date.

The sale provides an opportunity to pay down debt and optimize the mix of assets within the Dexterra portfolio.

Our partnership with Gitxaala First Nation has been strong over many years and we are excited about our continued partnership with them in the region.

About Dexterra

Dexterra employs over 8,500 people, delivering a range of support services for the management and operation of infrastructure across Canada and the USA.

Powered by people, Dexterra brings best-in-class regional expertise to every challenge and delivers innovative solutions, giving clients confidence in their day-to-day operations. Activities include a comprehensive range of integrated facilities management services, industry leading workforce accommodation solutions and other support services for diverse clients in the public and private sectors.

For further information contact:

Denise Achonu, CFO
Head office: Airway Centre, 5915 Airport Rd., 4th Floor Mississauga, Ontario L4V 1T1
Telephone: (905) 270-1964

You can also visit our website at dexterra.com.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/215025

FAQ

What did Dexterra Group sell in July 2024?

Dexterra Group sold 329 space rental units owned by Gitxaala Horizon North Services Partnership.

How much did Dexterra Group earn from the asset sale?

Dexterra Group earned $20.45 million from the sale of the assets.

What is the significance of the asset sale for Dexterra Group?

The asset sale allows Dexterra to manage its Energy Services assets proactively, pay down debt, and focus on its strategic goal of Support Services.

How does the asset sale align with Dexterra's strategic goals?

The sale aligns with Dexterra's strategic focus on Support Services and helps optimize their asset portfolio.

What is the role of Gitxaala First Nation in Dexterra's recent transaction?

Gitxaala First Nation is a partner in the joint venture Gitxaala Horizon North Services Partnership, which owned the sold assets.