DRUMMONDVILLE, QC, Jan. 31, 2013 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or "the Corporation") (TSX: CVT) today announced that it has signed a letter of intent to acquire all the issued and outstanding common shares of B.G. High Voltage Systems Limited ("B.G. High Voltage"), a provider of electrical services located in Scarborough, Ontario. The letter of intent is subject to customary closing conditions. If all these conditions are met, the transaction could close in April 2013.
Founded in 1987, B.G. High Voltage specializes in the planning, installation and maintenance of substations, transformers, as well as overhead and underground electricity distribution systems. The proposed purchased price amounts to $2.7 million, subject to post closure adjustments, and would be financed through the Corporation's available liquidities. For the 12-month period ending March 31, 2013, B.G. High Voltage is expected to generate revenues of approximately $8.5 million.
"B.G. High Voltage enjoys a solid reputation with regards to customer service as well as the quality of work carried out by its skilled and professional employees. This transaction is consistent with our strategic objectives and, if completed, it would allow CVTech to further enhance its service offering in Ontario," said André Laramée, President and Chief Executive Officer of CVTech.
OVERVIEW OF THE CORPORATION
CVTech is a company operating in the energy sector. Through Thirau ltée and its subsidiaries, Riggs Distler Inc. and Thirau LLC, the Corporation provides services to the electric power industry for the maintenance of transmission and distribution lines, primarily in Quebec, Ontario and the eastern United States. Another Thirau ltée subsidiary, J.J.L. Déboisement inc., specializes in control of vegetation surrounding power lines and in clearing rights of way. Thirau LLC's wholly owned subsidiary Riggs Distler & Company, Inc. is a leading provider of maintenance and construction services to the utility and heavy industrial markets.
This document may contain forward-looking statements that reflect management's current expectations regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management has no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.
SOURCE: CVTECH GROUP INC.
For further information:
André Laramée, MBA
President and Chief Executive Officer
Mario Trahan, CPA, CMA
Chief Financial Officer
Martin Goulet, CFA