/NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S.
NEWS WIRE SERVICES/
EDMONTON, Jan. 18 /CNW/ - ESTec Systems Corp. (TSX Venture: ESE) is
pleased to announce it has signed a Letter of Intent to acquire the
operating assets of privately held Encore Electronics Inc. of Saratoga
Springs, New York, (www.encore-elec.com).
The proposed transaction will be a cash purchase, expected to be
financed with debt. This will have the effect of approximately
doubling the size of ESTec and providing it with new allied business
operations in the United States. It is not anticipated that any funds
will be raised in the equity marketplace.
The transaction remains subject to additional due diligence, financing
and regulatory approval. Closing is scheduled for March 31, 2011.
Encore is an engineering firm that designs and manufactures electronic
instrumentation, including signal conditioners, computer controlled
amplifiers and computer controlled signal conditioning instrumentation.
This is a horizontal acquisition, expanding the offerings of Allan R.
Nelson Engineering (1997) Inc. a wholly owned subsidiary of ESTec
Systems Corp. The acquisition will allow Allan R. Nelson Engineering
to expand into products and services that meet the needs of Oil Sands
projects in Northern Alberta. This market has not been approached by
Encore and offers excellent opportunities for the growth of both
ESTec plans to keep Encore in their current facility and work towards
expanding the company.
For the Board
A. B. Nelson
About ESTec Systems Corp:
ESTec, through its wholly owned subsidiary, Allan R. Nelson Engineering
(1997) Inc, provides specialized forensic and design engineering
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE ESTec Systems Corp.
For further information:
regarding the Company's services see its website at www.estec.com