Stock Symbol: GBI
Listing: Toronto Stock Exchange
Outstanding Shares: 15.0 Million
Web Site: www.globalrailway.com
Acquisition of CAD Doubles Global's Revenue Base and Expands the
Company's Service Offering in Growing Locomotive and Railcar
Investor Conference Call Thursday November 15, 2007 at 11am ET
PITTSFORD, NY, Nov. 14 /CNW/ - (GBI:TSX) - Global Railway Industries
Ltd., www.globalrailway.com, ("Global" or the "Company"), a leading North
American provider of railway products and services, announced that the Company
has completed the acquisition of substantially all of the net working capital,
land, building, plant equipment and machinery, and other intangible assets of
Canada Allied Diesel Co. Ltd., and its affiliated companies, CAD Railway
Services Inc., Engine System Development Centre Inc., and Lachine Rail Center
Inc. ("CAD" Group of Companies), located in Lachine, Quebec.
Canada Allied Diesel Co. Ltd. is a national and international seller of
remanufactured locomotive engines, locomotive components and power generation
units. CAD Railway Services Inc. is a national and international re-
manufacturer of locomotives and rail cars. Engine System Development Centre
Inc. provides locomotive emission testing and engine diagnostic services. For
the fiscal year ended December 31, 2006, CAD's revenues were approximately
The purchase price for CAD's assets was $22.0 million; including the
acquisition of net working capital of $12.5 million. The Company paid
$8,000,000 in cash and financed the balance of the $22,000,000 net purchase
price through a newly created secured term debt facility shared by two
"This is a momentous day in the history of Global", said Terry McManaman,
Chairman, President and CEO of Global. The addition of CAD to the Global group
of companies is a major business milestone that will thrust Global into the
elite group of integrated rail service companies in North America."
Brian McMullan, Global's Chief Financial Officer added, "The benefits of
CAD to Global are significant. First, CAD doubles the size of the Company's
annual revenue base to over $65.0 million and is immediately positive to
Global's earnings. CAD also broadens Global's customer base in North America
and internationally, as well, it provides sales and supply synergies with
Bach-Simpson and Prime Steel; Global subsidiaries who currently supply
products to locomotive and railcar markets. CAD, as an integrator and
assembler of rolling stock, will provide Global with an expanded platform for
potential future synergistic acquisitions. CAD will also provide balance to
our revenue base and operations between Canada and United States, and reduce
our relative exposure to foreign exchange currency fluctuations. With CAD,
Global's product coverage becomes more equally distributed over the three
major expenditure categories of the railroads; track & signal, locomotive and
"CAD also expands Global's penetration into the locomotive and railcar
remanufacturing and parts market, a very dynamic industry as of late,"
commented Bill Sturtz, COO of Global. "North American railroads and commuter
systems today are beginning to make significant capital investments in the
remanufacturing of their locomotive, freight and passenger railcar fleets to
meet volume demands, fuel consumption efficiencies and new environment and
McManaman continues, "Our immediate focus is to execute our detailed
integration plan and ensure a smooth transition of CAD into the Global family
of companies. To achieve this goal, Global has retained the services of FTM
Capital Inc., whose Chairman and Managing Partner, Mr. Fausto Levy, will act
as the interim President of CAD. Mr. Levy has held management positions in
Bombardier, CN Rail, AMF Technotransport and Newcourt Capital and adds senior
level experience in engineering, manufacturing and finance to CAD."
"Supporting Fausto in senior management roles, are two key individuals,
Pierre Tremblay, CAD's Vice President of Sales and Marketing, who has
extensive experience in the locomotive industry and Jean-Guy Bergeron, CAD's
Vice President of Operations, who has agreed to join the new management team
after more than fourteen years at CAD. We are very fortunate to attract these
qualified professionals, who become the core group of CAD's day-to-day
management, "said McManaman.
Sturtz continues, "Our detailed transition plan for CAD will include
adopting many of the business and operating practices that have made Global's
subsidiaries the very efficient operations they are today."
"I sincerely thank all the people involved in closing this transaction.
The Global management team looks forward to delivering to our shareholders the
added value that CAD will bring to their investment in Global," concludes
For more information on CAD visit www.cadiesel.com and www.cadrail.ca.
Investor Conference Call
A conference call pertaining to Global's completing the acquisition of
CAD, will take place on Thursday November 15, 2007 beginning at 11am ET.
Mr. Terry McManaman, Chairman, President and CEO of Global, Bill Sturtz
COO of Global and Brian McMullan CFO of Global will speak on behalf of the
Company. A question-and-answer forum will follow management comments.
To listen and/or participate in this conference call, please dial
1-800-589-8577 (from Toronto 416-644-3428) approximately 10 minutes prior to
the start of the call.
For those unable to participate in the conference call, a recording of
the conference call will be available from 1:00 PM ET, Thursday November 15,
2007, until 11:59 PM ET, Thursday November 22, 2007. Please dial
1-877-289-8525 (from Toronto: 416-640-1917) and enter the reservation number
21253315 followed by the "pound sign" to listen to the rebroadcast.
About Global Railway Industries: Global Railway Industries Ltd. is a
diversified rail product company serving the railway industry in North
America. Global Railway is a public company whose shares are listed for
trading on the Toronto Stock Exchange (TSX) under the symbol "GBI". The
Company has a total of 15.0 million shares outstanding. For more information:
visit www.globalrailway.com or www.investorfile.com.
THIS NEWS RELEASE MAY CONTAIN FORWARD LOOKING INFORMATION. ACTUAL FUTURE
RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS,
UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE
ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS
FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED
ANNUAL REPORT AND ANNUAL INFORMATION FORM. ACCORDINGLY, NO ASSURANCES CAN BE
GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS
WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY
WILL DERIVE THEREFROM.
For further information:
For further information: Company Contact: Terry McManaman, Chairman,
President & CEO, Tel: (585) 419-9720, E-mail: email@example.com,
Web: www.globalrailway.com; Investor Relations: Gerry Wimmer,
INVESTORFILE.com, Tel: (416) 360-8895, Toll Free: 1-888-894-8222, E-mail:
firstname.lastname@example.org, Web: www.investorfile.com