TORONTO, Aug. 8 /CNW/ - Samuel Manu-Tech Inc. (SMT-TSX) ("Samuel") today
announced the signing of a definitive purchase agreement to acquire the
outstanding voting shares of Dofasco Elizabethtown Inc. ("Elizabethtown").
Elizabethtown is a leading manufacturer of stainless steel laser welded
tubular products located in Elizabethtown, Kentucky. "Combined with our
flagship Associated Tube Industries facility located in Markham, Ontario and
our new greenfield site, Tubos Samuel de Mexico located in Saltillo, Mexico,
this acquisition is an important step in broadening Samuel's existing
stainless steel tubular products capability and geographic reach throughout
North America and Mexico," said Mark Samuel, Samuel's Chairman and Chief
Executive Officer. Samuel will operate Elizabethtown within the Samuel Tube
Group under the name Associated Tube USA Inc.
The purchase price is U.S. $28.5 million subject to certain adjustments
for working capital items. Sales of Elizabethtown for the first six months of
2007 were approximately U.S. $16 million. Management expects this acquisition
to be accretive to earnings in its first full year of operations. Funding for
the acquisition will come from Samuel's existing revolving credit facilities.
The transaction is subject to customary closing conditions and is expected to
close in the next few days.
Samuel Manu-Tech Inc. is a leading North American industrial products and
technology company producing a wide range of steel, plastic and related
industrial products and services from locations in Canada, the United States
Some of the statements contained in this release are forward-looking
statements, such as estimates and statements that describe the Company's
future plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition or result to occur. Since
forward-looking statements address future events and conditions, by their very
nature, they involve inherent risks and uncertainties. Actual results in each
case could differ materially from those currently anticipated in such
For further information:
For further information: John D. Amodeo, Vice President and Chief
Financial Officer, Samuel Manu-Tech Inc., 185 The West Mall, Suite 1500,
Toronto, Ontario, M9C 5L5, Tel: (416) 626-2190, www.samuelmanutech.com, Email