WINNIPEG, March 29 /CNW/ - Exchange Industrial Income Fund (EIF.UN: TSX
Venture) ("EIIF" or the "Fund") is pleased to announce that it has entered
into a letter of intent to acquire 100% of the shares of 368994 Alberta Ltd.
o/a Hotsy Pressure Wash Systems ("Hotsy Grande Prairie") from its owners, Ken
and Eileen Langstaff, for gross consideration of approximately $2.0 million.
Hotsy Grande Prairie has exclusivity for the only other Hotsy territory in
Alberta not already serviced by Water Blast, an EIIF owned subsidiary.
Mike Pyle, the CEO of the Fund stated, "The acquisition of Hotsy Grande
Prairie is a logical expansion based on our recently acquired platform of the
Water Blast Group in Edmonton".
Ray Moher, the President of EIIF's wholly-owned subsidiary Water Blast
stated, "This acquisition now gives us exclusivity for the entire Province of
Alberta and Northern BC, and allows us to sell the custom manufactured
products of Water Blast into that territory. Ken and Eileen have already built
a very strong company in that region, and the added products of Water Blast
should only make it stronger. We look forward to working with Ken as he will
be staying on to manage the region".
Hotsy Grande Prairie had annual revenues of $2.1 million.
The acquisition will be funded with a combination of secured bank debt
along with the proceeds of the private placement of Fund units completed on
Feb. 15, 2007. The acquisition is expected to close at the end of April, 2007
and is subject to completion of due diligence by EIIF.
The TSX Venture Exchange has neither approved nor disapproved the
contents of this press release.
For further information:
For further information: Mike Pyle, President and CEO, Exchange
Industrial Income Fund, 509 - 167 Lombard Avenue, Winnipeg, MB, R3B 0V3,
Phone: (204) 982-1850, Fax: (204) 982-1855, E-mail: firstname.lastname@example.org