TORONTO , Jan. 9, 2026 /CNW/ - TerraVest Industries Inc. (TSX: TVK) ("TerraVest") is pleased to announce that it has acquired KBK Industries, LLC ("KBK"), a Texas-based manufacturer of fiberglass and steel storage tanks.

Headquartered in Houston, Texas, with manufacturing facilities in Rush Center and Liberal, Kansas, KBK is a well-known manufacturer of aboveground and underground fiberglass tanks for the C-Store, Agricultural, Chemical, Infrastructure and Energy markets. 

KBK was acquired for US$90.0 million cash, subject to a working capital adjustment approximately 90 days post-closing. The purchase price represents a multiple of approximately 5.6x to KBK's trailing twelve-month EBITDA¹.

Strategic Rationale

• Established manufacturer of aboveground and underground fiberglass tanks for the U.S. market
• Compliments TerraVest's existing aboveground fiberglass tank operations in Canada and recently acquired fiberglass tank operations in Maryland (Jan. 2025) under the Composite USA brand name
• Opportunity to leverage TerraVest's subsidiary's relationships in the C-Store market segment to enhance KBK's sales channels
• Added geographical diversification further mitigates against tariff exposure across TerraVest's corporate platform

John Jacob, President of Highland Tank Holdings, Inc. ("Highland Tank") welcomes the employees and management of KBK and looks forward to their continuing commitment to the Company and dedication to their customers. "KBK is a strong strategic fit for TerraVest, and in combination with Highland Tank and other TerraVest businesses, TerraVest now has the potential to provide the broadest product offering across the fiberglass and steel tank markets. The addition of KBK to the TerraVest portfolio will be beneficial to the existing customer base of both KBK and TerraVest, providing them with enhanced optionality in the industry." said Mr. Jacob.

TerraVest utilized its existing credit facility to fund the acquisition of KBK.

Caution Regarding Forward-Looking Statements
This news release contains forward-looking statements. All statements other than statements of historical fact contained in this news release are forward-looking statements, including, without limitation, statements regarding our strategic direction and evaluation of the business segments and TerraVest as a whole, the anticipated benefits and synergies for TerraVest resulting from the transaction (including TerraVest's ability to leverage KBK's manufacturing facilities and anticipated supply chain benefits), the anticipated effect of the transaction on TerraVest's strategy, operations and financial performance (including the complimentary nature of product lines as well as the ability to cross-sell in North America), the growth capabilities and opportunities of TerraVest and KBK (including KBK's existing management team), TerraVest's plans with respect to its existing portfolio businesses and long-term acquisition strategy and other plans and objectives of or involving TerraVest. Readers can identify many of these statements by looking for words such as "expects" and "will" or similar terms or variations of these words. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. 
By their nature, forward-looking statements require us to make assumptions and, accordingly, forward-looking statements are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. We caution readers of this news release not to place undue reliance on our forward-looking statements because a number of factors may cause actual future circumstances, results, conditions, actions or events to differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements and the assumptions underlying the forward-looking statements. 
Assumptions and analysis about the performance of TerraVest as a whole and its business segments, the markets in which the business segments compete and the prospects and values of the business segments are considered in setting the business plan for TerraVest, plans and/or ability to pay dividends, outlook for operations, financial position, results and cash flows, other plans and objectives and in making related forward-looking statements. Such assumptions include, without limitation, demand for products and services of the business segments in respect of the Canadian and other markets in which the businesses are active will be stable, and that input costs to business segments do not vary significantly from levels experienced historically. Should any of these factors or assumptions vary, actual results may differ materially from the forward-looking statements.

Non-IFRS Financial Measures - EBITDA
This news release makes reference to "EBITDA" which is a non-IFRS financial measure. This measure is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS.

"EBITDA" is defined as earnings before interests, income taxes, depreciation and amortization. Management believes this is a useful metric in evaluating the ongoing operating performance of TerraVest. Readers are cautioned that EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of TerraVest's or KBK's performance.

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SOURCE TerraVest Industries Inc.