EDMONTON, June 17, 2014 /CNW/ - McCoy Corporation ("McCoy", "McCoy Global" or "the Corporation") (TSX:MCB; OTCQX:MCCRF), a provider of innovative products and services for the global energy industry, today announced that it has sold its Mobile Solutions business for approximately CAD$14.75 million.
"The sale of the Mobile Solutions business is a major step towards becoming a pure play developer and provider of advanced tubular products and technologies," said Jim Rakievich, President and CEO of McCoy. "This divestiture enables McCoy to focus on our international expansion strategy which will optimize global customer service and support throughout the entire equipment lifecycle. The proceeds of this sale further strengthen our balance sheet, which will support the development of our "we" product line as well as fund potential strategic acquisitions."
Under the terms of the Share Purchase Agreement, McCoy sold 100 percent of the issued and outstanding shares of its wholly-owned subsidiary, Peerless Limited, to Manac Inc. (TSX:MA), a Montreal-based truck trailer manufacturer.
McCoy provides innovative products and services to the global energy industry. McCoy Global operates internationally through direct sales and distributors with its operations based out of Western Canada, the U.S. Gulf Coast, Europe and Asia-Pacific. McCoy Global's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, Louisiana, Texas, Aberdeen, Singapore and Luxembourg.
This News Release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this News Release contains forward-looking statements and information concerning McCoy Global's future financial performance. The forward-looking statements and information are based on certain key expectations and assumptions made by McCoy Global, including expectations and assumptions concerning fluctuations in the level of oil and gas industry capital expenditures, McCoy Global's ability to integrate acquired businesses and complete strategic acquisitions of additional businesses and other factors that affect demand for McCoy Global's products. Although McCoy Global believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because McCoy Global can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause McCoy Global's actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, fluctuations in oil and gas prices, fluctuations in the level of oil and gas industry capital expenditures and other factors that affect demand for McCoy Global's products, industry competition, the need to effectively integrate acquired businesses, uncertainties as to McCoy Global's ability to implement its business strategy effectively in Canada and the United states, labour, equipment and material costs, access to capital markets, interest and McCoy Global's ability to attract and retain key personnel. Additional information on these and other factors is available in continuous disclosure materials filed by McCoy Global with Canadian securities regulators. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this News Release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. McCoy Global undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: McCoy Corporation
For further information:
Mr. Peter Watson
General Counsel & Corporate Secretary