Calgary-based Black Diamond Group Limited (TSX: BDI, OTCQX: BDIMF) is expanding its footprint in the Canadian workforce accommodation sector with its planned purchase of Royal Camp Services Ltd. for approximately $119.7 million (C$165 million). This acquisition, expected to close by the end of 2025 pending regulatory approvals, represents a significant boost to Black Diamond’s portfolio of integrated accommodation and catering solutions across Canada.
The deal brings together two highly complementary companies serving the resource, infrastructure, and construction sectors, among others. Royal Camp Services has long been recognized as Western Canada’s foremost provider of remote accommodation and catering, boasting expertise in turnkey camp solutions including its subsidiary Summit Camps, which operates in highly remote British Columbia and Yukon territories. The combined operation will command nearly 12,000 rooms nationwide and employ more than 600 people, with about 250 employees identifying as Indigenous, reflecting the companies’ commitment to inclusive workforce development.
Black Diamond will finance the acquisition through a combination of cash and up to 4 million common shares priced at C$12.08 each, based on Black Diamond’s 10-day volume weighted average price at the time of signing. The cash portion will draw on Black Diamond’s existing asset-based credit facility. The purchase price aligns with the fair market value of Royal Camp’s tangible net assets, alongside anticipated operational synergies.
The financial outlook for this acquisition is optimistic. Royal Camp Services projects a three-year adjusted EBITDA ranging from $22.47 million to $29.69 million (C$31 million to C$41 million), excluding synergies. This forecast indicates the deal is expected to substantially enhance Black Diamond’s profitability and earnings per share. Industry observers see the strategic timing as Black Diamond leverages ongoing and upcoming major nation-building projects in Canada, which will likely accelerate demand for remote workforce accommodation and support services.
Trevor Haynes, Black Diamond’s Chairman and CEO, highlighted the strategic fit and shared vision between the two companies. He remarked that joining forces will strengthen their capability to deliver quality assets and full turnkey services to customers across the vast Canadian landscape. Haynes also emphasized the value of integrating Royal’s experience with Black Diamond’s existing operations, particularly with respect to addressing the growing needs of industries requiring mobile workforce support solutions.
Black Diamond itself operates two primary business units: Modular Space Solutions, focused on modular building rentals and sales across sectors like construction and government, and Workforce Solutions, which specializes in modular accommodation assets including operated camps. The company also leverages a proprietary digital platform, LodgeLink, to simplify crew travel logistics and accommodation booking across North America and Australia. Adding Royal Camp’s specialized services and operational footprint enhances Black Diamond’s ability to provide end-to-end accommodation and catering services seamlessly.
Royal Camp’s track record since its founding in 1991 includes delivering modern, high-quality, and meticulously managed remote camps, distinguished by exceptional catering and amenities. Its partnerships with Indigenous communities, such as the longstanding collaboration with Primco Dene of the Cold Lake First Nations, underscore the company’s community engagement and operational depth.
As Canada continues to expedite large-scale infrastructure and resource projects, Black Diamond and Royal Camp together appears to be set to become a leading player in workforce housing and support services.Â
