TORONTO, Jan. 14, 2013 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced that it has completed the acquisition of BE & H Extrusion Dies Inc. - an extrusion die manufacturer located in Wylie Texas which services the south-central region of the United States. The transaction was an asset purchase for cash consideration of approximately $1.5 million. The acquisition, to be operated as Exco Texas, secures for Exco an experienced workforce and a strong presence in an important geographic market segment where proximity to customers is key. The acquisition is expected to increase Exco's extrusion group sales by approximately 5% with the expectation of further growth in that region as Exco develops the business over the coming years. The operating results are expected to be accretive in the first year of operation.
Exco currently services the North American extrusion tooling market from a plant in Markham Ontario and a plant in Chesterfield Michigan. The acquisition of Exco Texas, in addition to bolstering our presence in the south-central region of the United States, will provide additional and much needed capacity to the group in order to meet the resurgent demand for extrusion dies as the US recovery continues to take root.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 11 strategic locations, we employ 2,213 people and service a diverse and broad customer base.
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We use words such as "anticipate", "plan", "may", "will", "should", "expect", "believe", "estimate" and similar expressions to identify forward-looking information and statements especially with respect to completion dates, investment amounts and Exco Texas sales levels and market penetration in the south-central region of the United States for future years. Such forward-looking information and statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe to be relevant and appropriate in the circumstances. Readers are cautioned not to place undue reliance on forward-looking information and statements, as there can be no assurance that the assumptions, plans, intentions or expectations upon which such statements are based will occur. Forward-looking information and statements are subject to known and unknown risks, uncertainties, assumptions and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed, implied or anticipated by such information and statements. These risks, uncertainties and assumptions are described in the Company's Management's Discussion and Analysis included in our 2012 Annual Report, in our 2012 Annual Information Form and, from time to time, in other reports and filings made by the Company with securities regulatory authorities.
While the Company believes that the expectations expressed by such forward-looking information and statements are reasonable, there can be no assurance that such expectations and assumptions will prove to be correct. In evaluating forward-looking information and statements, readers should carefully consider the various factors which could cause actual results or events to differ materially from those indicated in the forward-looking information and statements. Readers are cautioned that the foregoing list of important factors is not exhaustive. Furthermore, the Company disclaims any obligations to update publicly or otherwise revise any such factors or any of the forward-looking information or statements contained herein to reflect subsequent information, events or developments, changes in risk factors or otherwise.
SOURCE: Exco Technologies Limited
For further information:
Source: Exco Technologies Limited (TSX-XTC)
Contact: Paul Riganelli, Vice-President, Finance and Chief Financial Officer
Telephone: (905) 477-3065 Ext 7228