TORR Canada completes acquisition of Pure Group AS



    MONTREAL, QC, Oct. 25 /CNW/ - TORR Canada Inc. (TSX: TOR) ("TCI"),
dedicated to providing innovative process solutions to the Oil & Gas industry,
today announced the closing of the acquisition of all the shares of
Norwegian-based Pure Group AS, a provider of leading technologies for oil, gas
and water purification.
    This acquisition announced on July 30, 2007 will enable TCI to offer a
broader product offering and to access a larger distribution network. The
final purchase price will be paid with $10.5 million in cash, the issuance of
16,453,971 common shares of TORR, and the refinancing of an existing loan for
approximately $7.5 million.
    "This is an important moment for us" said Alain Ferland, President and
Chief Executive Officer of TORR Canada. "We are thrilled by the growth
prospects this acquisition will bring us and look forward to working as a new
and energized team dedicated to provide value to our customers and
shareholders."
    In order to refinance the repurchase of the preferred shares of Pure
Group (the existing loan) and to finance current working capital requirements
of the subsidiaries of Pure Group, TCI has secured a new credit facility with
DnB Nor, Norway's largest financial services group. The new credit facility
consists of (i) a five-year senior acquisition facility in an amount of
45,000,000NOK (approximately $8,010,000 using the conversion rate of the Bank
of Canada quoted on October 24, 2007) to finance the purchase of the shares
and/or the repurchase of the preferred shares of Pure Group, (ii) a senior
overdraft facility of 30,000,000NOK (approximately $5,340,000 using the same
conversion rate) and (iii) a guarantee facility of 15,000,000NOK (representing
$2,670,000 using the same conversion rate).
    As previously announced, further to the recent disruption in the market
for asset-backed security investments in Canada, TCI has approximately
$9 million of its liquidities invested in non-extensible asset-backed
commercial paper which has not been repaid at maturity and currently remains
outstanding. In order to prevent any liquidity concerns, TCI has entered into
a new $7.2 million credit facility with National Bank of Canada, with the
asset-backed commercial paper being provided as security.

    About TORR Canada Inc.

    TCI is dedicated to providing solutions to the oil and gas industry. TCI
designs, develops, manufactures and commercializes technologies to separate
oil, water and gas generated by oil and gas production. For more information,
please visit www.torrcanada.com. TCI recently acquired Pure Group AS of Norway
recently.

    Caution concerning forward-looking statements
    ---------------------------------------------
    This press release contains forward-looking statements. Such statements
inherently involve numerous risks and uncertainties. Actual future results may
differ from the anticipated results expressed in the forward-looking
statements contained in this press release and TCI does not undertake to
update this information. Investors are cautioned against placing undue
importance on forward-looking information contained herein and should consult
the final short form prospectus and the documents incorporated by reference
therein, which contain a more exhaustive analysis of risks and uncertainties
connected to TCI's business.

    %SEDAR: 00009317E




For further information:

For further information: TORR Canada Inc.: Jacques L. Drouin, Senior
Vice-President & CFO, (514) 522-5550, ext. 226, jdrouin@torrcanada.com; The
Equicom Group Inc.: Danielle Ste-Marie, (514) 844-6064,
dste-marie@equicomgroup.com

Organization Profile

TORR CANADA INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890