BURNABY, BC, Aug. 16 /CNW/ - GLENTEL Inc. (TSX: GLN) announces the signing of a binding purchase agreement whereby GLENTEL has agreed to purchase 81.5% of the ownership of Diamond Wireless, LLC, a mall-based Verizon Wireless "Premium Retailer" headquartered in Salt Lake City, Utah. GLENTEL has also agreed to purchase the remaining 18.5% minority interest in the future under certain terms and conditions.
Diamond Wireless operates 128 stores (118 in malls) in Washington, Oregon, Wyoming, Utah, Colorado, California, Arizona, Nevada, New Mexico, Texas and Hawaii, with a team of 750 associates. Founded in 2000 by brother-sister team Troy Crosland and Danielle Nielson, Diamond Wireless has gained the distinction of being a top-rated Verizon Wireless "Premium Retailer" operating under long-term agent agreements that authorize Diamond to represent Verizon Wireless in the western and southern states.
"We are delighted to welcome Diamond Wireless to our company," stated Thomas Skidmore, GLENTEL's President and Chief Executive Officer. "Diamond has consistently delivered strong growth in sales and profitability, new store openings, and solid same-store sales growth year over year similar to the performance of our Retail Division in Canada. As GLENTEL now continues its wireless retail mall expansion into the United States, we endorse Diamond's business plan to grow with profitability representing Verizon Wireless, under the continued leadership and commitment of Diamond's President and Chief Operating Officer, Troy Crosland, and his existing management team. Diamond Wireless will be a significant contributor to our earnings and shareholder value in the 4th quarter."
"We are also delighted to have reached an agreement with a company that shares similar core values of quality, service and integrity," stated Troy Crosland, Diamond's President and Co-Founder. "With our commitment to our Diamond team members and customers, we are confident that Diamond can nurture GLENTEL's growth plan in the U.S. and together build our brand."
The transaction is expected to close on October 1, 2010, and is subject to the fulfillment of certain customary conditions. The total purchase price is USD $50,450,000, subject to closing adjustments. The purchase price will be funded by GLENTEL's cash, short-term investments, and a committed bank facility of USD $35,000,000.
GLENTEL (TSX: GLN) is a leading provider of innovative and reliable telecommunications services and solutions in Canada and the United States. Founded in 1963 and headquartered in Burnaby, BC, Canada, GLENTEL comprises two operating divisions - Retail and Business - that service thousands of consumers and commercial telecommunications customers. Together with its divisions, the company operates more than 280 locations across Canada located in retail malls and high pedestrian-traffic street-front locations, Costco Wholesale stores, and business centers. As the largest multi-carrier mobile phone retailer in Canada, it offers a choice of network carrier and wireless device or phone. To its business and government customers, GLENTEL offers wireless service, rental equipment, satellite and terrestrial network systems, tower sites, and wireless asset monitoring. GLENTEL operates its business under the trading names Glentel Wireless, WirelessWave, The Telephone Booth (Tbooth and la cabine T) and WIRELESS etc.
Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third-party manufacturing, managing rapid growth, limited intellectual property protection, and other risks and uncertainties described in GLENTEL's public filings with securities regulatory authorities.
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For a copy of GLENTEL's annual report or for additional information visit www.glentel.com or www.sedar.com.
SOURCE GLENTEL Inc.
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