CALGARY, Aug. 12 /CNW/ - The Churchill Corporation (the "Corporation" or
"Churchill") announced today that Churchill has signed a purchase and sale
agreement to sell its Triton industrial businesses. The terms of the purchase
and sale agreement are confidential. This transaction will allow Churchill to
focus on its three most profitable segments: Institutional & Commercial
Building Construction, Industrial Electrical Contracting and Industrial
"Although the Corporation is divesting of Triton, its Industrial General
Contracting segment, the Corporation remains committed to its industrial
strategy through its electrical and insulation business units," said Jim
Houck. "This sale is consistent with Churchill's goal of focusing its
financial and human resources on businesses which are accretive to shareholder
value. Also, the transaction will further strengthen Churchill's debt-free
Triton with the financial and operational support from its new ownership
will be well-positioned to support its customers and benefit from growth
opportunities in the market. About 50 employees from the division will be
transferred to the new company. As a consequence, continuity for customers,
suppliers and partners is ensured.
The net cash proceeds from the sale of the Triton businesses, after
payment of transaction expenses and taxes are estimated at $20.0 million.
These proceeds will be used for general corporate purposes and are additive to
Churchill's cash and cash equivalents. Churchill will record a pre-tax gain
from the sale in third quarter.
Churchill will also be listing for sale the Triton office building
located at 8525 Davies Road, in Edmonton, Alberta in a separate transaction.
This follow-on transaction monetizes a latent asset on the Corporation's
balance sheet and will generate additional cash. The sale of the remaining
Triton real property is anticipated to generate approximately $4 million in
net cash proceeds.
About The Churchill Corporation:
The Churchill Corporation provides building construction, industrial
construction and maintenance services throughout Western Canada. Churchill
common shares are listed on the Toronto Stock Exchange under the symbol "CUQ".
FORWARD LOOKING STATEMENTS
Certain statements in this Press Release may constitute "forward-looking
statements". Forward-looking statements include, without limitation,
statements regarding the future financial position, business strategy,
budgets, litigation, projected costs, capital expenditures, financial results,
taxes, plans and objectives of the Corporation. Many of these statements can
be identified by looking for words such as "believes," "expects," "may,"
"will," "intends," "anticipates," "estimates," "continues," or the negative
thereof, or other variations thereon. Although management of Churchill
believes its expectations regarding future performance of the Corporation are
based on reasonable assumptions and currently available competitive, financial
and economic data, market conditions and operating plans, it can give no
assurance its expectations will be achieved. The Corporation cautions that, by
their nature, forward-looking statements, involve risks, and uncertainties and
that its actual actions, and/or results could differ materially from those
expressed or implied in such forward-looking statements, and that the
aforementioned risks, uncertainties and actions could affect the extent to
which a particular projection materializes. The Corporation assumes no
obligation to update the forward-looking statements should circumstances or
the Corporation's management's estimates or opinions change.
For further information:
For further information: Andrew Apedoe, Vice President Investor
Relations & Secretary, The Churchill Corporation, (403) 685-7775, Email:
email@example.com, Website: www.churchillcorporation.com