ERA Carbon Offsets Ltd. (TSX V:ESR) has announced plans to acquire Vancouver companies Offsetters Clean Technology Inc. and Carbon Credit Corp. (CCC) in a move to create the largest and most diverse carbon project development group in Canada.
Founded in 2005 by James Tansey, Offsetters provides carbon management solutions, helping organizations and individuals understand, reduce and offset their climate impact. CCC focuses on developing land-based carbon offset projects.
ERA said it has entered into a non-binding letter of intent (LOI) whereby it anticipates it will acquire approximately 90% of the shares of Offsetters and 100% of CCC's shares.
ERA is set to pay between $3.5 million and $6.0 million for the two organizations by the end 2016.
The LOI is to be replaced by a definitive agreement on or before October 14.
Robert Falls, founder and chairman of ERA, stated, "We are extremely pleased to have the opportunity to integrate three of Canada's leading offset project development companies under one roof, beginning an anticipated consolidation of the voluntary carbon business and creating the largest and most diverse carbon project development group in Canada.
"ERA's expertise in forest-based carbon will be augmented with the addition of the team from Carbon Credit Corp. and matched with Offsetters expertise in clean technology carbon project consulting and development."
ERA has also entered into a non-binding letter of intent whereby it will acquire the remaining 10% interest in Offsetters from Tansey.
This agreement is subject to a number of conditions including the appointment of Tansey to the position of CEO with the company.
Tansey said, "As a single company we will be able to deliver on almost every form of carbon management service from measurement and reductions strategies through to offset origination and supporting software services.
"At a time when we expect to see rapid growth in the demand for greenhouse gas management services and offset origination, beginning in 2013 with the launch of the cap and trade system under the Western Climate Initiative, this company will provide a unique one-stop shop for companies seeking to address their climate impacts."
