CALGARY, Aug. 2, 2016 /CNW/ - Mosaic Capital Corporation ("Mosaic") (TSX-V Symbols: M and M.PR.A) is pleased to announce that it has entered into an agreement to acquire an 80% interest in the business being carried on by Mackow Industries ("Mackow"). The remaining 20% will be retained by key management of Mackow.
Founded in 1985 and based in Winnipeg, Manitoba, Mackow is a manufacturer of precision fabricated metal components. Mackow's primary market is North American manufacturers of transit buses and highway motor coaches. Mackow's manufacturing facility has approximately 115 employees.
Mosaic's cost of the acquisition is $29.50 million, subject to typical post-closing adjustments and will be funded through a combination of cash and vendor take-back financing. In addition, there is a two year Vendor earn out provision to be paid to the vendors if the business meets specified targets.
Bob Mackow, President of Mackow stated "Mackow has established itself as a trusted leading supplier to the largest players in the transit bus and motor coach industry by providing consistently exceptional responsiveness, service and quality. Our partnership with Mosaic will provide us with the range of additional resources required to expand our business to meet the growing needs of our customers."
"We are excited about our partnership with Mackow" commented Harold Kunik, President of Mosaic. "The team at Mackow has done an excellent job of positioning and growing the business. This acquisition brings further industry and geographic diversity to Mosaic's portfolio as well as direct participation in the compelling North American transit bus and motor coach industry."
ABOUT MOSAIC CAPITAL CORPORATION
Mosaic is a Canadian investment company that owns a portfolio of established businesses which span a diverse range of industries and geographies. Mosaic's strategy is to create long-term value for its shareholders through accretive acquisitions, long-term portfolio ownership, sustained cash flows and organic portfolio growth. Mosaic achieves its objectives by maintaining financial discipline, acquiring businesses at attractive valuations, performing extensive acquisition due diligence, utilizing optimal transaction structuring and working closely with subsidiary businesses after acquisition.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements and forward-looking information, including statements and information which reflect current expectations regarding the future business outlook for Mackow and Mosaic. The words "believe", "expect", "intend", "estimate", "anticipate", "project", "scheduled", and similar expressions, as well as future or conditional verbs such as "will", "should", "would", and "could" often identify forward-looking statements and forward-looking information. The forward-looking statements and information contained herein are only predictions and reflect the current beliefs of management with respect to future events and are based on information currently available to management. Actual results and events may differ materially from those contemplated by these forward-looking statements and information due to these statements and information being subject to a number of risks and uncertainties. Undue reliance should not be placed on these forward-looking statements and forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature forward-looking statements and information involve numerous assumptions and known and unknown risks and uncertainties, both general and specific that contribute to the possibility that the predictions, projections and other forward-looking statements and information will not occur. These risks and uncertainties include, but are not limited to, general business and economic conditions in geographic areas where Mackow has operations; pricing pressures and other competitive factors; third parties failing to honour their contractual obligations with Mackow; procurement and pricing issues with suppliers; unforeseen cost overruns on Mackow's projects; legislative or regulatory developments; the continued availability and cost of qualified labour; the continued strength of the industries within which customers of Mackow operate; and the continued ability to secure new business. Should any of the risks or uncertainties facing Mackow materialize, or should assumptions underlying the forward-looking statements or information prove incorrect, actual results, performance, activities or achievements of both Mackow and Mosaic could vary materially from those expressed or implied by the forward-looking statements or information contained in this document. Readers are cautioned not to place undue reliance on any forward-looking statements or information contained in this news release as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. Readers are cautioned that the foregoing list of risks is not exhaustive. Additional information on other factors that could affect the operations or financial results of Mosaic and its subsidiaries are included in reports on file with applicable securities regulatory authorities (including, in particular, Mosaic's most recent annual information form) and may be accessed through the SEDAR website (www.sedar.com) under the profile for Mosaic. Statements containing forward-looking information reflect management's current beliefs and assumptions based on information in its possession on the date of this news release. Although management believes that the assumptions reflected in the forward-looking statements contained herein are reasonable, there can be no assurance that such expectations will prove to be correct. Any forward-looking statements or information herein contained are made as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. Mosaic does not assume any obligation to update or revise them to reflect new information, events or circumstances.
SOURCE MOSAIC CAPITAL CORPORATION
For further information: Allan Fowler, Chief Financial Officer, Mosaic Capital Corporation, 400, 2424 - 4th Street SW, Calgary, AB T2S 2T4, T: (403) 270-4663, E: [email protected]