TSX Venture Exchange Symbol "BRY"
EDMONTON, Sept. 2 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSX Venture
Exchange: BRY) a leading Canadian wholesale distributor of industrial drilling
fluids, steel products and services, is pleased to announce that it has
completed the acquisition of Weifang Steel Canada Ltd. ("Weifang"), a Western
Canadian-based master wholesale distributor of steel products to the oil and
gas and construction industries. The acquisition of Weifang is expected to add
approximately $30 million in annual revenues to Bri-Chem and expand and
diversify Bri-Chem's wholesale distribution business.
"We are very pleased to have completed this acquisition as Weifang adds
further diversification to Bri-Chem's robust market area. We look forward to
working together with the Weifang's management team in growing the business,"
comments Mr. Don Caron, Chairman of Bri-Chem,
Neil Rasmussen, Weifang's President, said, "We believe this transaction
is a very good fit for our company and we are excited about our contribution
to the future growth of Bri-Chem."
The total aggregate purchase price of $10,948,906 consists of $7,948,906
cash payable as to $4,948,906 on closing and $3,000,000 payable as to
$1,000,000 60 days after the first anniversary of the close of the acquisition
(the "Closing Date"), $1,000,000 60 days after the second anniversary of the
Closing Date, and $1,000,000 60 days after the third anniversary of the
Closing Date and $3,000,000 by way of the issuance of 1,304,348 common shares
at a price of $2.30 per share. The vendors are also entitled to receive up to
a $450,000 purchase price adjustment, subject to Weifang achieving a certain
level of profitability to closing, to be determined and approved upon Bri-Chem
receiving final interim closing financial statements of Weifang.
Bri-Chem is a wholesale distributor of industrial drilling fluid supplies
and steel products and services to the oil and gas and construction
industries. Bri-Chem provides over 100 domestic and foreign drilling fluid
products to customers throughout Alberta, British Columbia and Saskatchewan
and distributes drill pipe, carbon steel welded pipe, carbon steel seamless
pipe, stainless steel welded pipe, stainless steel seamless pipe, tubing &
casing, sucker rods, galvanized steel products as well as fittings and
flanges. Bri-Chem's customers operate in a wide range of industries, including
oil & gas, manufacturing, forestry, agriculture, construction, and mining.
Forward Looking Statements
Certain statements contained in this press release, including statements
which may contain words such as "could", "should", "expect", "anticipate",
"believe", "will", and similar expressions and statements relating to matters
that are not historical facts are forward looking statements. Such forward
looking statements involve known and unknown risks and uncertainties which may
cause the actual results, performances or achievements of Bri-Chem to be
materially different from any future results, performances or achievements
expressed or implied by such forward looking statements. Such factors include,
but are not limited to, fluctuations in oil and gas activity levels, political
and economic conditions, and the demand for products provided by Bri-Chem.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Don Caron, T: (780) 420-6885, F: (780)