/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
Toronto Stock Exchange: ARF.UN
CALGARY-BASED PRECAST AND PRE-STRESSED CONCRETE STRUCTURES MANUFACTURER
STRENGTHENS ARMTEC'S WESTERN CANADIAN INFRASTRUCTURE PLATFORM
GUELPH, ON, Oct. 1 /CNW/ - Armtec Infrastructure Income Fund ("Armtec" or
the "Fund") (TSX: ARF.UN) announced today that its Board of Trustees has
declared an increase of $0.01 per unit in the monthly cash distribution to
unitholders to $0.14 per month, or $1.68 per unit annualized. The first
distribution at the new rate will be paid on November 15, 2007, to unitholders
of record on October 31, 2007.
In addition, Armtec has completed its previously disclosed acquisition of
the precast and pre-stressed concrete manufacturing business of Con-Force
("Con-Force"), based in Calgary, Alberta. Under the terms of this transaction,
previously announced on September 10, 2007, Armtec, through its wholly owned
subsidiary, Armtec Holdings Limited, acquired all of the outstanding shares of
the corporations which, directly or indirectly, carry on the Con-Force
business for an aggregate purchase price of approximately $120 million,
subject to adjustment in accordance with the share purchase agreement.
In connection with the financing of the Con-Force acquisition, Armtec
entered into an agreement on September 14, 2007, with a syndicate of
underwriters co-led by TD Securities Inc. and Scotia Capital Inc., and
including BMO Nesbitt Burns Inc., CIBC World Markets Inc. and M Partners Inc.,
to complete a public offering of 3,705,000 Units of the Fund at a price of
$16.40 per Unit, representing aggregate gross proceeds to the Fund of
$60,762,000. The public offering closed on October 1, 2007, and the net
proceeds of the public offering were used to partially finance the acquisition
of the Con-Force business.
"The increase to monthly distributions reflects the continued strength of
Armtec's business and our ability to deliver on our growth strategy," said
Charles M. Phillips, President and CEO of Armtec. "Our acquisition of
Con-Force's precast and pre-stressed concrete business is a major step forward
for the Fund and its unitholders and significantly builds on our growth
momentum, increasing consolidated revenues by approximately two-thirds, and
expands our range of products and services. It is an excellent fit with Armtec
and we are currently in the process of integrating our operations which, when
completed, will add greater depth to our expertise and strengthen our presence
in the fast-growing infrastructure markets in Western Canada."
Con-Force is a leading manufacturer of precast and pre-stressed concrete
in Western Canada. Founded in 1949, Con-Force has developed a strong
reputation for providing innovative and quality engineered solutions.
Con-Force focuses on high value-added products requiring significant
engineering and manufacturing expertise. With approximately 40 in-house
engineers and drafts people and three large-scale, specialized production
facilities in British Columbia, Alberta and Manitoba, Con-Force is able to
service large infrastructure construction projects requiring specialized
Please refer to the information set out under "Forward-Looking
Statements" concerning the material factors and assumptions upon which the
statement concerning the consolidation of manufacturing activities and
retention of key sales and production employees were based and the material
factors that could cause actual results to differ materially.
Armtec is a leading manufacturer and marketer of drainage products and
engineered solutions for infrastructure applications in a diverse
cross-section of industries, including the public infrastructure market and
private sector markets such as natural resources, residential drainage and
agricultural drainage in Canada. Armtec is Canada's only national
multi-material manufacturer specializing in corrugated high-density
polyethylene pipe, corrugated steel pipe and related engineered products.
Armtec also distributes a broad range of water control and geosynthetic
products, and manufactures and distributes certain high value-added engineered
products internationally. For further information, please visit Armtec's
website at www.armtecincomefund.com. Armtec Infrastructure Income Fund is
listed on the Toronto Stock Exchange, under the trading symbol ARF.UN.
This news release contains certain statements that constitute
forward-looking information within the meaning of applicable securities laws
("forward-looking statements"). All statements other than statements of
historical fact contained herein are forward-looking statements, including,
without limitation, statements regarding the future financial position, cash
distributions, business strategy, proposed acquisitions (including the
Con-Force acquisition), budgets, litigation, projected costs and plans and
objectives of or involving the Fund or the businesses in which it has
invested. Prospective investors can identify many of these statements by
looking for words such as "believe", "expects", "will", "intends", "projects",
"anticipates", "estimates", "continues" and similar words or the negative
thereof. There can be no assurance that the plans, intentions or expectations
upon which these forward-looking statements are based will occur. 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 assumptions and are
subject to inherent risks and uncertainties, including those discussed herein.
There is significant risk that forward-looking statements will not prove to be
accurate. You are cautioned not to place undue reliance on forward-looking
statements made herein because a number of factors could cause actual future
results, conditions, actions or events to differ materially from the targets,
expectations, estimates or intentions expressed in the forward-looking
The future outcomes that relate to forward-looking statements may be
influenced by many factors, including but not limited to: industry
cyclicality; competition; reduction in demand for products; collection from
customers; relationships with suppliers; lack of long-term agreements;
expiration of rights under licence and distribution arrangements; raw material
price volatility; product liability; intellectual property; reliance on key
personnel; environmental; collective bargaining; interest rates; uninsured and
underinsured losses; operating hazards; risks of future legal proceedings;
dependence on other Armtec entities; income tax matters; leverage and
restrictive covenants; credit facilities; nature of units; distribution of
securities on redemption or termination of Fund; restrictions on potential
growth; effect of market interest rates on price of Units; undiversified and
illiquid holdings in Armtec Operating Trust; potential dilution; and various
risks relating to the Con-Force acquisition, including risks relating to
integration and realization of expected synergies, Con-Force's reliance on key
personnel, potential undisclosed liabilities associated with the Con-Force
acquisition, and Armtec's limited recourse against the vendors of Con-Force.
You are cautioned that the foregoing list of factors is not exhaustive and
that when relying on forward-looking statements to make decisions with respect
to the Fund, investors and others should carefully consider these factors, as
well as other uncertainties and potential events, and the inherent uncertainty
of forward-looking statements.
The forward-looking statements contained herein are expressly qualified
in their entirety by this cautionary statement. The Fund undertakes no
obligation to publicly update or revise any forward-looking statements except
as expressly required by applicable securities law.
Risks related to the Fund have been summarized in the Fund's latest
Annual Information Form, Management's Discussion and Analysis included in the
Annual Report and quarterly financial reports available on www.sedar.com or
the Fund's web site at www.armtecincomefund.com.
"Con-Force" is a registered Canadian trademark of Con-Force Leasing Inc.
For further information:
For further information: Charles M. Phillips, President & Chief
Executive Officer, Armtec Limited Partnership, Tel: (519) 822-0210, Fax: (519)
822-8894; Carrie Boutcher, VP, Finance & Interim Chief Financial Officer,
Armtec Limited Partnership, Tel: (519) 822-0210, Fax: (519) 822-8894