- Through the acquisition, CVTech would increase its revenues by more
than $100 million
- Conditional purchase offer with closing date scheduled for July 1, 2009
- Proposed purchased price of $60 million
DRUMMONDVILLE, QC, Feb. 11 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or
the "Corporation") (Toronto Stock Exchange: CVT) announces that it has signed
on February 9, 2009 a Letter of Intent to purchase all of the issued and
outstanding shares of a North American Company ("Company") which provides
electrical services to the utility and industrial markets. Due to the nature
of the proposed transaction, the Company's name will only be disclosed upon
The undertaking is conditional upon:
- A financial, legal, accounting, technological and environmental due
- The approval of the competent regulatory authorities as well as the
Stock Exchange and the Board of Directors of the Corporation; and
- Various other steps customary to merger and acquisition activities.
The key personnel of the Company will eventually enter into employment
agreements with initial terms of three (3) years in order to provide
continuity in the daily operations of the Company.
The price offered is approximately $60 million, which will be payable as
follows: $48 million in cash and the balance, $12 million payable in common
shares of the Corporation.
For the year ended December 31, 2008, the Company has generated contract
revenues of more than $100 million. Similar contract revenues are forecasted
for the current year.
Burkman Capital Corporation is engaged as the exclusive financial advisor
to the Corporation in connection with the proposed acquisition.
CVTech is a management corporation. Some of its subsidiaries design,
manufacture and sell CVTs. Another subsidiary, Thiro, provides services for
the construction and maintenance of electrical transmission and distribution
lines. It has two indirect subsidiaries: Thiro USA and J.J.L. Déboisement inc.
("J.J.L.") Thiro USA, like Thiro, provides services for the construction and
maintenance of electrical transmission and distribution lines. J.J.L.
specializes in vegetation control on rights-of-way for transmission and
distribution lines. The subsidiary CVTech-AAB inc. specializes in the
rebuilding of crankshafts and reconditioning of cylinders, and the
distribution of engine parts.
CVTech is the owner of the trademarks and CVTech R&D inc. holds the
intellectual property on products which are part of its technological
CVTech currently has a staff of approximately 682 employees comprising
163 employees in the CVT systems and related products segments and 519
employees in the electricity segment.
The present document may contain forward-looking statements that reflect
the current expectations of management with regard to future events. These
forward-looking statements depend on a certain number of factors and are
subject to risks and uncertainties. The actual results could differ from those
anticipated. Management undertakes no obligation to update or revise the said
forward-looking statements on receipt of new information or subsequent to
future events other than the ones required by law.
For further information with regard to CVTech, the reader is invited to
consult the SEDAR database and the Corporation's Website at:
For further information:
For further information: André Laramée, MBA, President and CEO, CVTech
Group Inc., (819) 479-7771; Mario Trahan, CMA, Chief Financial Officer, CVTech
Group Inc., (819) 479-7771