OAKVILLE, ON, Jan. 22, 2013 /CNW/ - Vicwest Inc. (the "Company") (TSX: VIC) (TSX: VIC.DB) today announced it has executed its rights under a previously-announced convertible debenture investment and acquired 56% of the common shares of All Weather Insulated Panels ("All Weather"), a leading American manufacturer of insulated metal panels ("IMP") for industrial, commercial and cold storage applications.
The Company's original investment in 2010 in All Weather was in the form of a debenture, convertible at the Company's direction, to common shares having an equity value of 56% of All Weather, and includes rights to intellectual property and patents and a five year call option to purchase the remaining minority ownership interest based upon an agreed earnings formula.
Today's acquisition of the majority position supports the Company's overall growth strategy, provides greater opportunities for IMP market expansion across North-America and capitalizes on recent business advancements between the two companies such as the commercialization of a third manufacturing facility in Little Rock Arkansas in 2012 and technology and best practice synergies that have standardized the North American IMP product offering. To ensure continued expansion of the business and product line, the founders of All Weather, Bill and Michael Lowery, will remain in key leadership positions with the Company's North American IMP Group.
"Insulated Metal Panels are an important strategic product for us and we believe that demand for them will continue to grow for the foreseeable future," said Paul Lobb, President of Vicwest Building Products, the division of the Company with oversight of its IMP business. "Solidifying our position in All Weather ensures that we will be able to serve this market growth with a single North American focus and, by continuing to partner with All Weather's skilled co-founders, we intend to significantly grow and enhance the performance of our IMP business assets in both Canada and the United States".
"This move represents an exciting culmination of the last two years and confirms our on-going commitment to advancing the IMP portion of the business," said Bill Lowery, President of All Weather. "The strength of our North American IMP organization with its dedicated team of market and technical experts will open doors to new business for us. Our job is to grow with an eye on deeper market penetration and to aggressively move our product line up the value chain."
ABOUT INSULATED METAL PANELS
Insulated metal panels are manufactured composites comprising rigid facings and an insulating core. They offer superior thermal resistance, structural integrity and one-step installation compared with field-assembled building systems that must rely on experienced installers, ideal weather conditions and design variations for different climates. IMP is a dominant building material in Europe and other overseas markets, and is gaining rapid acceptance in North America through the displacement of more traditional building materials and processes. IMP is a green product, offering unsurpassed insulation capacity using environmentally friendly and recyclable materials.
ABOUT VICWEST INC.
Vicwest Inc. is a leading North American manufacturer and distributor of engineered storage and handling systems for grain, fertilizer and liquid storage as well as building construction products for agricultural, institutional, commercial, industrial and residential markets. We operate through two strategically aligned divisions: Vicwest Building Products and Westeel. With approximately 7,000 customers, 1,200 dedicated employees and 34 business partners, we are positioned for growth in domestic and international markets. Vicwest Inc. is a member of the S&P/TSX SmallCap Index. For more information, visit www.vicwestinc.com.
Certain statements in this news release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include, but are not limited to, management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Readers are encouraged to review the most recently filed Management's Discussion and Analysis and other disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. Readers are cautioned not to place undue reliance on the Company's forward-looking statements. The forward-looking statements contained herein are made as of the date of this press release and except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE: Vicwest Inc.
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President & Chief Executive Officer
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Chief Financial Officer
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