Samuel Manu-Tech Inc. Announces Acquisition of Northland Stainless, Inc.



    TORONTO, Aug. 14 /CNW/ - Samuel Manu-Tech Inc. (SMT-TSX) ("Samuel") today
announced that it has acquired Northland Stainless, Inc. ("Northland"), a
recognized leader in the design, engineering, manufacturing and supply of
stainless steel pressure vessels, tank heads and components primarily to the
ethanol, pharmaceutical and chemical industries in North America.
    This strategic acquisition complements Samuel's existing steel pressure
vessel operations, including its Silvan Industries division in Marinette,
Wisconsin and its Steel Fab division in Abingdon, Virginia. The purchase
allows the company to expand its high quality product range and to further
grow its market share in the pressure vessel industry. Northland has a long
standing reputation in the steel pressure vessel industry and more recently,
has enjoyed considerable growth in the ethanol market. Annual sales of
Northland approximated U.S. $17 million in the fiscal year ended June 30,
2007. Northland was founded in 1973 and is based in Tomahawk, Wisconsin,
employing approximately 80 people.
    The transaction is structured as a 100% stock purchase. The purchase
price is U.S. $8.75 million subject to certain adjustments for working capital
items. Management expects this acquisition to be accretive to earnings in its
first full year of operations. Funding for the acquisition came from Samuel's
existing revolving credit facilities.
    "We are excited to welcome Northland Stainless, their management and
employees to our group of companies", commented Samuel's Chairman and Chief
Executive Officer, Mark Samuel, "We consider them to be a positive addition to
our steel pressure vessel group within our growing family of Metal Processing
businesses".

    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
and Mexico.

    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
statements.

    %SEDAR: 00002004E




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
Address: smt@samuelmanutech.com

Organization Profile

SAMUEL MANU-TECH INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890