Enterprise Group Proceeds With Hart Integration and Secures Further T.C. Backhoe Commitments

Enterprise Group Proceeds With Hart Integration and Secures Further T.C. 
Backhoe Commitments 
ST. ALBERT, ALBERTA -- (Marketwired) -- 01/13/14 -- Enterprise Group,
Inc. ("Enterprise," or "the Company") (TSX:E) is pleased to provide
an update on the integration of Hart Oilfield Rentals Ltd. ("Hart").
The Company acquired Hart, one of Western Canada's most highly
regarded oilfield service providers, for a cost of $22.6 million.  
Enterprise completed its acquisition of Hart on January 3, 2014, and
has already made significant advancements towards the integration of
this highly complementary new business unit. Highlights include: 


 
--  Hart's vendors and chief executives, Gordon and Bonnie Hart, have both
    signed two-year management agreements with Enterprise. Five other
    Hartexecutives have also signed five-year management agreements,
    completing the transition of Hart's senior management. 
--  Work has begun on a new Enterprise location in Fort St. John, British
    Columbia. This office is expected to house not only a new Hart office,
    but also offices for Artic Therm and Calgary Tunnelling& Horizontal
    Augering Ltd.("CTHA"). 
--  Logistics are currently being streamlined to allow CTHA and Artic
    Thermto utilize Hart's six existinglocations - five in Alberta and one
    in British Columbia - resulting in both increased productivity and
    reduced transportation costs. 
--  Hart has commenced the utilization of inventory from Artic Therm in lieu
    of third party rentals, resulting in increases in operating margin. 
--  Enterprise is finalizing the purchase of new additions to Hart's fleet
    of modular units. In total, Enterprise expects to deploy a total
    of$9.4million towards developing this fleet. The Company's work to date
    has confirmed its original estimate that a full year's deployment of
    these new units could increase Hart's annual revenue and EBITDA to$29.9
    million and $12.0 million, respectively. 

 
Hart is a full service oilfield site infrastructure company,
providing its customers both site services and equipment rentals.
Hart's equipment fleet consists of approximately 1,500 owned pieces
and an additional 500 pieces that have been rented in order to
fulfill demand. This fleet provides on-site support for oilfield
drilling and completion operations, and includes both traditional
well site equipment and Hart's 'combo' equipment, modular designs
that have been proven to significantly increase site efficiency. Hart
both designs and manufactures this proprietary equipment, and
currently possesses 14 pending patents on its industrial modular
design assets. During its most recent fiscal year, Hart generated
$22.9 million of revenue and $7.2 million of EBITDA, and has grown
these metrics at CAGRs of 22% and 37%, respectively, over the past
four years. 
"We are very excited to have completed the acquisition of Hart, and
are eager to rapidly integrate their business into our own," stated
Leonard D. Jaroszuk, Enterprise's President and Chief Executive
Officer. "During 2013, Enterprise demonstrated its ability to
successfully integrate acquisitions without disrupting growth. A key
component of our integration strategy is our ability to retain and
develop leaders within the businesses we acquire. I'm accordingly
thrilled that Gordon and Bonnie Hart, as well as the rest of Hart's
executive team, have formally joined the Enterprise family."  
"We expect the addition of Hart will be both immediately accretive
and create multiple benefits for our business. Most importantly, this
acquisition significantly enhances our ability to capitalize on the
potential that we believe exists within the equipment rentals market,
allows Enterprise to leverage Hart's existing impressive customer
base, and provides us with immediate entry to six very strategic
locations. The synergy between Hart and Artic Therm is particularly
exciting. Both share a very similar customer base. By integrating
these divisions, we can combine their sales forces, greatly expand
our product offerings, and create a more complete customer
experience." 
"Hart has witnessed rapid and encouraging returns on its recent
investments. Its assets operate for up to 20 years, and offer an
average gross payback period of less than 18 months. As a result, new
assets have generated an average of more than 60% EBITDAS margin to
Hart's bottom line. With the appropriate capital support, we believe
we are capable of as much as doubling both Hart's revenue and EBITDAS
over the next three years.Our confidence in this potential is
bolstered by Hart's innovative offerings. These proprietary modular
units are totally unique within the oilfield service industry, and
provide Hart with a considerable competitive advantage. We look
forward to maximizing the opportunity provided by this competitive
advantage over the year ahead." 
Enterprise is also pleased to announce that T.C. Backhoe and
Directional Drilling ("TC") continues to secure new business
opportunities. TC has entered into a Master Service Agreement to
provide Hydro-Vac services for a joint venture project between a
major oil company and one of North America's largest energy
companies. This agreement, which will remain in place until the
conclusion of 2016, is expected to generate $1.3 million of annual
revenue. TC also has increased the scope of its Master Service
Agreement with one of North America's largest pipeline and natural
gas companies, which was previously announced on October 25, 2013.
This agreement, which was initially expected to generate $3.0 million
in total revenue, is now expected to generate $4.2 million in total
revenue over the next 20 months. In order to support both these
projects and future growth, TC has ordered two additional Hydro-Vac
units, over and above the eight units ordered and announced in
October, 2013.  
"We're pleased to announce the continued growth of TC's project
pipeline," concluded Mr. Jaroszuk. "TC, like Hart, is proud of its
commitment to exceptional customer service. This commitment is a
major factor in TC's success, and we are excited to both execute upon
these projects and further grow this division over the course of
2014." 
About Enterprise Group, Inc.  
Enterprise Group, Inc. is a consolidator of construction services
companies operating in the energy, utility and transportation
infrastructure industries. The Company's focus is primarily
construction services and specialized equipment rental. The Company's
strategy is to acquire complementary service companies in Western
Canada, consolidating capital, management and human resources to
support continued growth. Enterprise became a Western Canadian leader
in flameless heat technology in September 2012 with its acquisition
of Artic Therm International Ltd., a leader in underground
infrastructure construction in June 2013 with the acquisition of
Calgary Tunnelling& Horizontal Augering Ltd., and a leader in
oilfield service rentals in January 2014 with the acquisition of Hart
Oilfield Rentals Ltd. 
Forward Looking Information  
Certain statements contained in this news release constitute
forward-looking information. These statements relate to future events
or the Company's future performance. The use of any of the words
"could", "expect", "believe", "will", "projected", "estimated" and
similar expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking information
and are based on the Company's current belief or assumptions as to
the outcome and timing of such future events. Actual future results
may differ materially. The Company's Annual Information Form and
other documents filed with securities regulatory authorities
(accessible through the SEDAR website www.sedar.com) describe the
risks, material assumptions and other factors that could influence
actual results and which are incorporated herein by reference. The
Company disclaims any intention or obligation to publicly update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as may be expressly
required by applicable securities laws. 
Non-IFRS Measures  
The Company uses International Financial Reporting Standards
("IFRS"). EBITDA is not a measure that has any standardized meaning
prescribed by IFRS and is therefore referred to as a non-IFRS
measure. This news release contains references to EBITDA. This
non-IFRS measure used by the Company may not be comparable to a
similar measure used by other companies. Management believes that in
addition to net income, EBITDA is a useful supplemental measure as it
provides an indication of the results generated by the Company's
principal business activities prior to consideration of how those
activities are financed or how the results are taxed. EBITDA is
calculated as net income excluding depreciation, amortization,
interest and taxes.
Contacts:
Leonard D. Jaroszuk - President & CEO, or
Desmond O'Kell - Vice President
780-418-4400
contact@EnterpriseGRP.ca
www.EnterpriseGRP.ca