- Acquisition of Pickens Plastics will facilitate the Company's growth in
the United States
- Perfectly in keeping with Management's strict selection criteria
- Immediate contribution of $7.5 million to revenues with possibility
of rapid expansion
QUEBEC CITY, March 4 /CNW Telbec/ - Sigma Industries Inc. (TSX Venture
Exchange: SIC), a leading composite and metal products manufacturer, announces
today that its wholly-owned subsidiary, Sigma US Industries Inc., has
concluded an agreement to acquire Pickens Plastics ("Pickens") based in
Jefferson, Ohio. Founded more than 30 years ago, Pickens possesses two
manufacturing facility; a 115,000-square-foot plant located in Jefferson and a
50,000-square-foot facility in Ashtabula, Ohio. It currently has 60 employees,
including 50 directly related to manufacturing operations. Pickens represents
the Company's first acquisition in the United States.
ACQUISITION IN KEEPING WITH THE COMPANY'S STRATEGIC OBJECTIVES
The acquisition of Pickens is in perfect harmony with Sigma's strategic
plan which consists of further consolidating its strong business relationships
with its clients, adding complementary technologies in order to become a
one-stop-shop solution in terms of technological expertise and manufacturing
processes, while yielding a better match-up between cash inflow and outflow in
An ISO 9002 certified entity, Pickens enhances Sigma's technological
portfolio through the high-tonnage Sheet Moulding Compound (SMC) manufacturing
process. Pickens also owns two painting lines for assembled components, one of
which is entirely robotized, as well as two robotized water jet trimmers.
These assets yield a competitive edge that will allow Sigma to offer more
complete business solutions to its current and future customers.
"This acquisition fits ideally with our growth objectives," mentioned
Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
"The technological expertise developed by Pickens, its state-of-the-art
equipment and its strategic location in close proximity to our target markets
are key factors that will facilitate its integration and the achievement of
future growth at all levels of the organization."
SALES OF $7.5 MILLION WITH STRONG GROWTH POTENTIAL
Pickens' sales currently reach $7.5 million and essentially reflect the
production of industrial components, thus providing Sigma with further
sectorial diversification. In addition, the business volume generated by
Pickens' current clientele holds significant development prospects. Finally,
strong cross-selling opportunities resulting from the offer of Pickens'
technological expertise to Sigma's current customer base, as well as that of
Sigma's manufacturing processes to clients of Pickens, combined with the
latter's available production capacity, reveal a considerable growth
ABOUT SIGMA INDUSTRIES
Sigma Industries Inc. (TSX-V: SIC), a leading composite and metal
products manufacturer, has six operating subsidiaries and employs close to
550 people. The Company is active in the growing heavy-duty truck, coach,
transit and bus, train and subway, machinery, agriculture, light forestry, and
wind energy market segments. Sigma sells its products to original equipment
manufacturers and distributors in the United States, Canada and Europe.
Sigma has had a recent history of steady growth and accretive
acquisitions. Its recent and planned growth initiatives are expected to
continue to raise Sigma's profile with investors.
This press release contains certain forward-looking statements with
respect to the Company. Such forward-looking statements are dependent upon a
certain number of factors and are subject to risks and uncertainties. Actual
results may differ from those expected. The information contained in this
press release is dated March 4, 2008, the date on which Management approved
the press release. Management does not assume any obligation to update or
revise any forward-looking statements, whether as a result of new information
or future events, except when required by the regulatory authorities.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Sigma Industries Inc., Denis Bertrand, Chief
Executive Officer, (418) 780-3902, email@example.com; Sigma
Industries Inc., Bertrand Côté, Chief Financial Officer, (418) 780-3903,