OAKVILLE, ON, Jan. 22, 2013 /CNW/ - Vicwest Inc. (the "Company") (TSX:
VIC) (TSX: VIC.DB) today announced it has executed its rights under a
previously-announced convertible debenture investment and acquired 56%
of the common shares of All Weather Insulated Panels ("All Weather"), a
leading American manufacturer of insulated metal panels ("IMP") for
industrial, commercial and cold storage applications.
The Company's original investment in 2010 in All Weather was in the form
of a debenture, convertible at the Company's direction, to common
shares having an equity value of 56% of All Weather, and includes
rights to intellectual property and patents and a five year call option
to purchase the remaining minority ownership interest based upon an
agreed earnings formula.
Today's acquisition of the majority position supports the Company's
overall growth strategy, provides greater opportunities for IMP market
expansion across North-America and capitalizes on recent business
advancements between the two companies such as the commercialization of
a third manufacturing facility in Little Rock Arkansas in 2012 and
technology and best practice synergies that have standardized the North
American IMP product offering. To ensure continued expansion of the
business and product line, the founders of All Weather, Bill and
Michael Lowery, will remain in key leadership positions with the
Company's North American IMP Group.
"Insulated Metal Panels are an important strategic product for us and we
believe that demand for them will continue to grow for the foreseeable
future," said Paul Lobb, President of Vicwest Building Products, the
division of the Company with oversight of its IMP business.
"Solidifying our position in All Weather ensures that we will be able
to serve this market growth with a single North American focus and, by
continuing to partner with All Weather's skilled co-founders, we intend
to significantly grow and enhance the performance of our IMP business
assets in both Canada and the United States".
"This move represents an exciting culmination of the last two years and
confirms our on-going commitment to advancing the IMP portion of the
business," said Bill Lowery, President of All Weather. "The strength of
our North American IMP organization with its dedicated team of market
and technical experts will open doors to new business for us. Our job
is to grow with an eye on deeper market penetration and to aggressively
move our product line up the value chain."
ABOUT INSULATED METAL PANELS
Insulated metal panels are manufactured composites comprising rigid
facings and an insulating core. They offer superior thermal resistance,
structural integrity and one-step installation compared with
field-assembled building systems that must rely on experienced
installers, ideal weather conditions and design variations for
different climates. IMP is a dominant building material in Europe and
other overseas markets, and is gaining rapid acceptance in North
America through the displacement of more traditional building materials
and processes. IMP is a green product, offering unsurpassed insulation
capacity using environmentally friendly and recyclable materials.
ABOUT VICWEST INC.
Vicwest Inc. is a leading North American manufacturer and distributor of
engineered storage and handling systems for grain, fertilizer and
liquid storage as well as building construction products for
agricultural, institutional, commercial, industrial and residential
markets. We operate through two strategically aligned divisions:
Vicwest Building Products and Westeel. With approximately 7,000
customers, 1,200 dedicated employees and 34 business partners, we are
positioned for growth in domestic and international markets. Vicwest
Inc. is a member of the S&P/TSX SmallCap Index. For more information,
Certain statements in this news release constitute forward-looking
statements within the meaning of applicable securities laws.
Forward-looking statements include, but are not limited to,
management's beliefs, plans, estimates, and intentions, and similar
statements concerning anticipated future events, results,
circumstances, performance or expectations that are not historical
facts. Forward-looking statements generally can be identified by the
use of forward-looking terminology such as "outlook", "objective",
"may", "will", "expect", "intend", "estimate", "anticipate", "believe",
"should", "plans" or "continue", or similar expressions suggesting
future outcomes or events. Such forward-looking statements reflect
management's current beliefs and are based on information currently
available to management. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from
those contemplated by such statements. Readers are encouraged to
review the most recently filed Management's Discussion and Analysis and
other disclosure documents filed by the Company with Canadian
securities regulatory agencies and commissions. Readers are cautioned
not to place undue reliance on the Company's forward-looking
statements. The forward-looking statements contained herein are made
as of the date of this press release and except as required by
applicable law, the Company undertakes no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
SOURCE: Vicwest Inc.
For further information:
President & Chief Executive Officer
Tel: (905) 469-5700
Fax: (905) 825-1090
Chief Financial Officer
Tel: (905) 469-5706
Fax: (905) 825-1090