Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, June 6, 2014

Article Excerpt

ENERFLEX LTD., $18.86, symbol EFX on Toronto, rents and sells equipment and services for natural gas production, including compression and processing plants, refrigeration equipment and power generators. The stock jumped over 12% this week after Enerflex announced that it will acquire two businesses owned by privately held Axip Energy Services LP: an international contract compression and processing subsidiary and a division that provides aftermarket services. Enerflex will pay $430 million U.S. in cash. The agreement includes operations in Mexico, South America, Southeast Asia and the Middle East, but not Axip’s U.S. business. The major assets that Enerflex will receive include a 448-unit compression fleet totalling about 285,000 horsepower, all of which are operating under long-term rental contracts. This equipment is currently 90% utilized and has an average age of 5.5 years. Enerflex also gets gas-treating facilities in Mexico, Argentina and Peru. All of Axip’s international senior managers will join Enerflex after the deal closes. Axip’s international business had $128 million U.S. of revenue in…

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