SASKATOON, Feb. 7, 2012 /CNW/ - Golden Opportunities Fund Inc. ("Golden") is pleased to announce it has led a major transaction to complete the management buyout of Reho Holdings Ltd. operating as Warman Home Center and includes all of its various subdivisions: Warman Homes, Warman Truss, Warman Metals and Warman Cabinets located in Warman, Saskatchewan.
Warman Home Center with 185 employees and over 80 million dollars in sales has grown rapidly from the construction activity in Saskatchewan with five different integrated subsidiaries. They have been the recipient of many awards including 2009 and 2010 Saskatoon & Region Home Builders' Association Customer Choice Award for Single Family Builder, 2008 Western Retail Lumber Association Inc. Industry Achievement Award, and named as one of the Top 100 Saskatchewan Companies in 2008 and 2009 by SaskBusiness Magazine and 2009 by the StarPhoenix and LeaderPost.
Golden led the investment syndicate with an investment of 13.78 million dollars taking a major position in the General Partner and Limited Partnership. The long standing executive management team also reaffirmed their commitment and excitement for the company's future by acquiring a major interest in the new structure while current majority owner of the company, David Holst will continue to be active on the board of directors of the company. Other leading Saskatchewan institutional investors; Lex Capital Partners LP, PIC Investments Group Inc. and Hathersage Holdings Inc. also partnered with Golden Opportunities with an investment in the syndicated financing.
Doug Banzet, CFO of Golden indicates, "In these times of public market volatility you are seeing the largest pension funds in Canada move towards transactions that provide attractive, stable and consistent long term yields. This investment transaction provides that for the Fund's shareholders in a Province that is forecasted to continue to lead the country in economic growth over the foreseeable future."
Saskatchewan's economy is forecasted by RBC to lead the country again in 2012 and 2013 due to a booming construction industry and a rapidly expanding housing market. The location of Warman Home Center in one of the fastest growing cities in Saskatchewan and gateway to the Province's abundant northern resource makes this investment well situated for growth beyond its proven historical track record of service and profitability.
"This investment compliments our strategic positioning of the Fund that has occurred in the past 18 months to be dominantly weighted in Saskatchewan oil and gas, but then balanced with a portfolio of real estate backed healthcare facilities throughout Saskatchewan to care for our elderly and a portfolio of companies capitalizing on the New Saskatchewan, that provide stable attractive long term earnings." Say's Grant Kook President and CEO of Golden. "This newest transaction of $13.78 million reaffirms our commitment in a major way to that strategy."
About Golden Opportunities:
Golden Opportunities Fund Inc. is Saskatchewan's longest standing provincial labour-sponsored investment fund, having raised approximately $200 million in share capital to date from approximately 23,500 shareholders. The Fund is managed by Saskatchewan's largest private venture capital fund Manager, Westcap Mgt. Ltd., with over $500 million under management. Westcap specializes in the development, launch, and fund management of niche funds focused on the New Saskatchewan.
Neither the Saskatchewan Financial Services Commission nor the Manitoba Securities Commission has approved nor disapproved the information contained herein.
For further information:
Grant Kook, President/CEO or Doug Banzet, COO
Golden Opportunities Fund Inc.
830 - 410 - 22nd St. E. Saskatoon, SK
Tel: (306) 652-5557 Fax: (306) 652-8186