Armtec Acquires Leading Acoustic Barrier Manufacturer

    Toronto Stock Exchange: ARF.UN

    GUELPH, ON, June 5 /CNW/ - Armtec Infrastructure Income Fund (the "Fund")
(TSX: ARF.UN) today announced it has acquired all outstanding shares of
Durisol Inc. and its related companies ("Durisol"), for a purchase price of
approximately $18.5 million (of which $5 million was paid in Units of the Fund
and the balance in cash). A further payment of up to $15 million may be made
in 2010 subject to the acquired business satisfying certain financial
    Durisol manufactures highway noise barriers and related highway and
infrastructure products such as retaining walls and acoustic enclosures. Its
noise barriers are highly effective at blocking sound transmission. Its sales
are primarily in Ontario and the North Eastern and Upper Mid-West United
States. Based in Hamilton, Ontario, Durisol has been designing, producing and
installing its products for over 50 years. Currently, it has 100 permanent
employees and an additional 40 to 60 seasonal employees. Durisol is expected
to operate as a division of the Fund.
    "The acquisition of Durisol creates strong growth opportunities for the
Fund and diversifies our product line in the growing infrastructure sector,"
said Charles Phillips, President and Chief Executive Officer. "The transaction
is immediately accretive to the Fund's earnings and complements our other
divisions. The investment in this business broadens our product, market and
geographic presence, and benefits new and existing customers. I am pleased
that Hans Rerup, President and owner of Durisol, and his management team will
remain with the Durisol division following the closing of the transaction."
    The Fund plans to expand and accelerate Durisol's sales into Western
Canada, and provide additional opportunities to sell Durisol products in
Quebec. The facilities of the Fund's Con-Force division are suitable for
manufacturing Durisol's products resulting in shipment savings to Western
Canada and enabling penetration into the US Pacific North West. There may also
be opportunities to sell Durisol's existing products to Armtec Division's
existing customers. Durisol is recognized as the only fully qualified supplier
for absorptive material in Ontario.

    About Armtec Infrastructure Income Fund

    The Fund is a leading manufacturer and marketer of drainage products and
engineered bridging solutions for infrastructure applications in a diverse
cross-section of industries. These include the public infrastructure market
and private sector markets such as natural resources, commercial building,
residential construction and agricultural drainage in Canada. The Fund's
Armtec division is Canada's only national multi-material manufacturer
specializing in corrugated high density polyethylene pipe, and corrugated
steel pipe for drainage applications and highly engineered solutions including
bridging products and water management systems. The Con-Force division designs
and manufactures a wide range of bridging and construction products including
the advanced "NU" bridge girder system that allows for some of the longest
spans available in precast concrete technology.

    Forward-Looking Statements

    This news release contains certain statements that constitute
forward-looking information within the meaning of applicable securities laws
("forward-looking statements"). All statements other than statements of
historical fact contained herein are forward-looking statements, including,
without limitation, statements regarding the impact of the Durisol acquisition
on the Fund's financial performance and statements regarding the business
strategy, plans and objectives of or involving the Fund or the businesses in
which it has invested. Prospective investors can identify many of these
statements by looking for words such as "believe", "expects", "will",
"intends", "plans", "projects", "anticipates", "estimates", "continues" and
similar words or the negative thereof. There can be no assurance that the
plans, intentions or expectations upon which these forward-looking statements
are based will occur. Although management believes that the expectations
represented in such forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct.
    By their nature, forward-looking statements require assumptions and are
subject to inherent risks and uncertainties, including those discussed herein.
There is significant risk that forward-looking statements will not prove to be
accurate. You are cautioned not to place undue reliance on forward-looking
statements made herein because a number of factors could cause actual future
results, conditions, actions or events to differ materially from the targets,
expectations, estimates or intentions expressed in the forward-looking
    The future outcomes that relate to forward-looking statements may be
influenced by many factors, including but not limited to: industry
cyclicality; competition; reduction in demand for products; collection from
customers; relationships with suppliers; lack of long-term agreements;
expiration of rights under licence and distribution arrangements; raw material
price volatility; product liability; intellectual property; reliance on key
personnel; environmental; collective bargaining; interest rates; uninsured and
underinsured losses; operating hazards; risks of future legal proceedings;
dependence on other Fund subsidiaries; income tax matters; leverage and
restrictive covenants; credit facilities; nature of units; distribution of
securities on redemption or termination of Fund; restrictions on potential
growth; effect of market interest rates on price of Units; undiversified and
illiquid holdings in Armtec Operating Trust; potential dilution; and various
risks relating to the Durisol acquisition, including risks relating to
integration and realization of expected synergies, Durisol's reliance on key
personnel, potential undisclosed liabilities associated with the Durisol
acquisition, and the Fund's limited recourse against the vendors of Durisol.
You are cautioned that the foregoing list of factors is not exhaustive and
that when relying on forward-looking statements to make decisions with respect
to the Fund, investors and others should carefully consider these factors, as
well as other uncertainties and potential events, and the inherent uncertainty
of forward-looking statements.
    The forward-looking statements contained herein are expressly qualified
in their entirety by this cautionary statement. The Fund undertakes no
obligation to publicly update or revise any forward-looking statements except
as expressly required by applicable securities law.
    Risks related to the Fund have been summarized in the Fund's latest
Annual Information Form, Management's Discussion and Analysis included in the
Annual Report and quarterly financial reports available on or
the Fund's web site at

For further information:

For further information: Charles M. Phillips, President & Chief
Executive Officer, Armtec Limited Partnership, Tel: (519) 822-0210, Fax: (519)
822-8894; James R. Newell, Chief Financial Officer, Armtec Limited
Partnership, Tel: (519) 822-0210, Fax: (519) 822-8894; Carrie Boutcher, Vice
President, Finance, Armtec Limited Partnership, Tel: (519) 822-0210, Fax:
(519) 822-8894

Organization Profile


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