Armtec Infrastructure Income Fund Announces Agreement to Acquire Leading Ontario-based Precast and Pre-stressed Concrete Manufacturer

    Toronto Stock Exchange: ARF.UN

    GUELPH, ON, June 8 /CNW/ - Armtec Infrastructure Income Fund (the "Fund")
(TSX: ARF.UN) today announced that it has signed an agreement to acquire the
shares of Pre-Con Inc. ("Pre-Con") for a purchase price of approximately $48.4
million subject to certain post-closing adjustments. The transaction is
expected to close in June 2009 subject to the satisfaction of customary
closing conditions. The transaction will be funded by an increase in the
Fund's committed Credit Facilities.
    The market leader in custom precast pre-stressed concrete products in
southern Ontario, and previously owned by Lafarge S.A., Pre-Con owns and
operates two facilities in the region: a 19-acre site in Brampton, which
includes a 92,500 square foot manufacturing facility and a 20,700 square foot
office building; and a 46-acre outdoor operation in Woodstock with a 7,200
square foot casting building. The company provides single source technical
sales, design, engineering, project management, manufacturing and installation
services for precast concrete (predominantly pre-stressed) components and
systems to both commercial/industrial and infrastructure markets. It
manufactures six product lines for the southern Ontario market and enjoys a
market-leading position in the province.
    "Pre-Con is a tremendous addition to the Fund and our Con-Force division.
It moves us into a leading position in the Ontario precast and pre-stressed
market, complementing our existing businesses in the province and
significantly strengthening our competitive position in central Canada," said
Charles Phillips, the Fund's President and Chief Executive Officer. "Pre-Con
has an excellent management team and, when this transaction is completed, we
will have essentially achieved our objective of building the Con-Force
division into a truly national precast platform in Canada."
    "With normalized annual sales of approximately $70 million and
approximately 370 employees, Pre-Con was founded over 50 years ago and has
been involved in some of the largest precast projects completed in the
province. Some of its recently completed projects include the parkade
expansion at Toronto's Pearson International Airport and the award-winning
bridge project over Moose Creek in Timmins, Ontario. As a well-established and
successful business with a long track record of service, the company has a
history of developing strong customer relationships and has a respected
platform to support growing government spending on major infrastructure
projects, including road construction and public transit initiatives."
    Scotia Capital acted as exclusive financial advisor to Armtec
Infrastructure Income Fund on the acquisition of Pre-Con.

    About Armtec Infrastructure Income Fund

    The Fund is a leading manufacturer and marketer of a comprehensive range
of infrastructure products and engineered construction solutions for customers
in a diverse cross-section of industries that are located in every region of
Canada, as well as in selected markets in North America and worldwide. These
markets include Canada's national and regional public infrastructure markets
and private sector markets in agricultural drainage, commercial building,
residential construction and natural resources. Operating through its three
divisions and with a network of offices and production facilities across the
country, the Fund is Canada's only national multi-material manufacturer. The
Armtec Division specializes in high density polyethylene and corrugated steel
pipe products for drainage and bridge applications, and water management
systems. The Con-Force Division offers a wide variety of precast and
pre-stressed concrete products and includes advanced construction components
and high-value engineered solutions to large project customers. The Durisol
Division provides a full suite of highway noise barriers and related
infrastructure products to the transportation sector. Armtec Infrastructure
Income Fund is listed on the TSX under the ARF.UN symbol. For more
information, please visit

    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 Pre-Con acquisition and its
impact 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 Pre-Con acquisition, including risks relating to
completion of the acquisition and integration and realization of expected
synergies, satisfaction of the various conditions to closing the acquisition,
Pre-Con's reliance on key personnel, potential undisclosed liabilities
associated with the Pre-Con's acquisition, and the Fund's limited recourse
against the vendors of Pre-Con. 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

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