(TSX : ALC)
TORONTO, April 15 /CNW/ - Algoma Central Corporation ("Algoma")
(TSX:ALC) announced today that it has completed the previously
announced acquisition from Upper Lakes Group Inc. ("ULG") of its
partnership interest in Seaway Marine Transport and related entities
(collectively, "SMT") along with the vessels and assets owned by ULG
and its affiliates and used by SMT in its Great Lakes - St. Lawrence
Waterway dry-bulk freight business.
Under the terms of the transaction, Algoma has acquired 11 vessels
outright and has acquired ULG's interest in four jointly owned vessels.
In addition, Algoma acquired ULG's interest in a fifth vessel that is
currently under construction in China. This vessel, which is expected
to arrive in Canada in July, 2011, will be named the Algoma Mariner.
"This is an historic day for Algoma Central Corporation", said Greg
Wight, President and CEO of Algoma. "With this acquisition we will
enhance our focus on our domestic dry-bulk marine transportation
segment and the very important task of fleet renewal based on the
recently announced acquisition of new Equinox Class vessels. We
welcome the shipboard personnel of the vessels acquired from Upper
Lakes and the SMT personnel to Algoma as we look to the future with
One Vision, One Purpose and One Team!
About Algoma Central Corporation
Algoma Central Corporation owns and operates the largest Canadian flag
fleet of dry and liquid bulk carriers operating on the Great Lakes -
St. Lawrence Waterway. With this transaction completed Algoma's
Canadian flag fleet consists of twenty-one self-unloading dry-bulk
carriers, including the new self-unloader presently under construction,
twelve gearless dry bulk carriers and seven product tankers. Algoma has
recently announced a significant investment in state of the art new
Equinox Class vessels for domestic dry-bulk service. The Equinox Class
will provide much needed improvements in operating efficiency and
environmental performance. Algoma also has interests in ocean dry-bulk
and product tanker vessels operating in international markets. Algoma
owns a diversified ship repair and steel fabricating facility active in
the Great Lakes and St. Lawrence regions of Canada. In addition, Algoma
owns and manages commercial real estate properties in Sault Ste. Marie,
St. Catharines and Waterloo, Ontario.
Certain information included in this press release is forward-looking,
within the meaning of applicable securities laws. Much of this
information can be identified by looking for words such as "believe",
"expects", "expected", "will", "intends", "projects", "anticipates",
"estimates", "continues" or similar words. In particular, this press
release includes forward-looking statements pertaining to the intended
use of net proceeds of the offering of the Debentures. Algoma believes
the expectations reflected in such forward-looking statements are
reasonable but no assurance can be given that these expectations will
prove to be correct and such forward-looking statements should not be
unduly relied upon.
Forward-looking statements are based on current information and
expectations that involve a number of risks and uncertainties, which
could cause actual results to differ materially from those anticipated.
These risks include, but are not limited to, risks associated with the
uncertainty associated with accessing capital markets and the risks
related to Algoma's business, including those identified in Algoma's
Annual Information Form for the fiscal year ended December 31, 2010 on
pages 11 to 15. Reference should be made to this additional information
prior to making any investment decision. Forward looking statements
contained in this press release are made as of the date hereof and are
subject to change. Algoma assumes no obligation to revise or update
forward looking statements to reflect new circumstances, except as
required by law.
SOURCE Algoma Central Corporation
For further information:
| Greg D. Wight, CFA || Wayne Smith |
| President and Chief Executive Officer || Senior Vice-President, Commercial |
| (905) 687-7850 || (905) 687-7898 |