MONTRÉAL, Nov. 28, 2014 /CNW Telbec/ - GLV Inc. ("GLV" or the "Corporation") announced today that it has completed the sale of its Pulp & Paper Division (the "Division") to 9027173 Canada Inc., a corporation owned by Richard Verreault and Laurent Verreault, the Executive Chairman of the Board of GLV, under the previously announced terms. As previously disclosed, the total consideration received by GLV for the sale of the Division is $67 million and remains subject to certain post-closing adjustments.
As per the terms of the share sale agreement, Richard Verreault resigned in his capacity as director, officer and employee of GLV. To replace him as head of GLV, the Corporation's Board of Directors has unanimously agreed to appoint Marc Barbeau as President and Chief Executive Officer, effective immediately. Prior to this appointment, Mr. Barbeau was, since June 2012, Executive Vice President of GLV Inc. and President of Ovivo. He joined GLV's finance team in 2000 and was appointed as Executive Vice President and Chief Financial Officer in 2007.
In addition, GLV is pleased to announce that François R. Roy is appointed as a director of the Corporation. Mr. Roy has a distinguished track record as a corporate director and executive in both the private and public sectors, as well as at non-profit organizations and in academia. During the course of his career, Mr. Roy has held the position of Chief Financial Officer at Quebecor, Avenor, Telemedia Corporation and McGill University. He has been a corporate director since 1998 and sits on the boards of la Caisse de dépôt et placement du Québec, Transcontinental, Noranda Income Fund and Capstone Infrastructure Corporation.
Furthermore, the Corporation announced that a previously disclosed new revolving credit facility has been put in place, and is now available to GLV. This facility consists of a line of credit of $60 million available for general corporate purposes and $80 million available for letters of credit guaranteed by Export Development Canada. This financing was arranged through a bank syndicate led by National Bank Financial in their capacity as Lead Arranger and Bookrunner. The other syndicate participants are Royal Bank of Canada, Comerica Bank and HSBC Bank Canada.
In the next few weeks, GLV will change its name to Ovivo Inc. to reflect the Corporation's focus on water treatment products and solutions. In addition, the Corporation will seek approval from the Toronto Stock Exchange for new ticker designations. Any changes in this regard will be communicated to shareholders and investors in due course.
"With the sale of the Pulp & Paper Division completed, we are very pleased to move forward to the next chapter of the future of our Corporation" said President and Chief Executive Officer Marc Barbeau. "With a strong balance sheet and a dedicated management focus, Ovivo is well- positioned to capitalize on the compelling opportunities available in the fast growing water treatment industry."
About GLV Inc.
GLV is operating in the water treatment industry, offering comprehensive technological solutions as well as services and equipment tailored to specific client needs. GLV's business units operate in more than 18 countries and have approximately 1,000 employees. GLV Inc. is a public company whose shares trade on the Toronto Stock Exchange under the ticker symbols GLV.A and GLV.B.
Notice regarding forward-looking statements
Certain statements in this press release and other public communications regarding management's objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of applicable securities legislation. Forward looking statements are recognized by the use of terms such as "forecast," "project," "could," "plan," "aim," "estimate" and other similar terms, possibly used in the future or conditional, particularly with regard to certain assumptions. The management of GLV would like to point out that forward looking statements involve a number of uncertainties and known and unknown risks such that the actual and future results of GLV could differ considerably from those stated. There can be no assurance as to the materialization of the results, performance or achievements as expressed in or underlying the forward-looking statements. The forward-looking statements included in this press release were made as of the date hereof, and unless required to do so pursuant to applicable securities legislation, management of GLV assumes no obligation to update them.
Information about the risk factors to which GLV Inc. is exposed is provided under Section 11, "Risks and Uncertainties" in the management's discussion and analysis for the fiscal year ended March 31, 2014 available on SEDAR (www.sedar.com) and the Corporation's website (www.glv.com).
SOURCE: GLV Inc.
For further information: Marc Barbeau, President and Chief Executive Officer, Tel: + 1 514 284?2224; François Dufresne, Chief Financial Officer, Tel.: + 1 514 842?7236, [email protected]