Newalta Corporation announced the completion of the sale of its Industrial Division to Revolution Acquisition LP (Revolution), a Birch Hill Equity Partners company, for cash proceeds of $300 million plus the assumption of certain decommissioning liabilities. Proceeds from the sale will immediately be used to pay down Newalta's debt and to support the 2015 capital program, the company said.

Effective February 27, 2015, the Industrial Division became a stand-alone entity, under the new name Terrapure Environmental. The company has 900 employees and includes a head office in Burlington, Ontario, a 400 bpd Group II lube base oil re-refinery in North Vancouver, British Columbia, Canada, and over 35 locations across Canada. Terrapure will continue to serve customers in various industry sectors from coast to coast. Former Newalta Senior Vice President Todd Moser will now lead Terrapure as President and CEO.

"The sale of the Industrial Division significantly strengthens our balance sheet and provides financial flexibility ahead of a challenging year in our industry. It also enables Newalta to concentrate all of our resources and capital on the core growth opportunities available to us as a pure play energy services company," said John Barkhouse, President and CEO. "We are pleased with the outcome of the sale and wish the Industrial Division success under the new ownership of Birch Hill."

Newalta purchased this North Vancouver re-refinery from Mohawk Lubricants Ltd. in 2002. Designed and commissioned in 1983, this facility was North America's first commercial scale re-refinery to use vacuum distillation and hydrotreating to recover base oil from used lubricating oil.

The company also blends and packages fully formulated lubricants, including API licensed engine oils for both passenger car and diesel engines, automotive and industrial gear oils, hydraulic oils, tractor fluids, saw and chain oils at this same facility.