TORONTO, April 5, 2016 /CNW/ - Exco Technologies Limited (TSX-XTC) announced that it has completed the acquisition of AFX Industries L.L.C. ('AFX') for consideration of US$73 million, excluding $4 million of assumed debt. The transaction was previously announced in a press release dated February 16, 2016. AFX had revenue of approximately C$115 million (equivalent) in 2015. Exco expects the acquisition will be highly accretive to its earnings per share.
"AFX's high quality operations are extremely complementary to our automotive interior trim business", said Brian Robbins, President and CEO of Exco. "AFX also provides us with new capabilities and customer/ supplier relationships that undoubtedly strengthen our opportunity for further growth", added Robbins.
AFX was founded in 1998 and is based in Port Huron, Michigan with manufacturing operations in Matamoros, Mexico. The company is a leading tier 2 supplier of leather and leather-like interior trim components to the North American automotive market. AFX supplies die cut leather sets for seating and most other interior trim applications as well as injection-molded, hand-sewn, machine-sewn and hand-wrapped interior components of all types. These components include steering wheels, automatic shift knobs, shift boots, park brake handles, armrests, console lids and instrument panels. Exco will report the results of AFX within its Automotive Solutions Group beginning in its third fiscal quarter ending June 30, 2016.
A conference call to discuss the transaction will be held on Thursday April 7, 2016 at 8:30 am (Toronto time) and can be accessed by dialing (647) 427-7450 for local (Toronto) calls or toll free 1-888-231-8191. To access the live audio webcast, please log on to www.excocorp.com, or http://event.on24.com/r.htm?e=1168595&s=1&k=0DBDE1FF14C63F1BD4B9DAC5FCA28CCF a few minutes before the event.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 20 strategic locations in 10 countries, we employ 6,697 people and service a diverse and broad customer base.
Information in this news release relating to the expectation for earnings per share accretion are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements in this news release. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, assumptions about the number of automobiles produced in North America, the rate of economic growth in North America, raw material prices, continuing economic recovery, currency fluctuations which may in fact not occur, the level of interest rates, the success of integration plans and depreciation rates.
While Exco believes that the expectations expressed by such forward-looking statements are reasonable, we cannot assure that they will be correct. In evaluating forward-looking information and statements, readers should carefully consider the various factors which could cause actual results or events to differ materially from those indicated in the forward-looking information and statements. Readers are cautioned that the foregoing list of important factors is not exhaustive.
SOURCE Exco Technologies Limited
For further information: Source: Exco Technologies Limited (TSX-XTC), Contact: Paul Riganelli, Senior Vice President and Chief Operating Officer, Telephone: (905) 477-3065 Ext. 7228, Website: http://www.excocorp.com