OAKVILLE, ON, Jan. 27, 2014 /CNW/ - Vicwest Inc. (the "Company") (TSX: VIC, VIC.DB, VIC.DB.A) today announced it has agreed to acquire the steel deck and exterior metal cladding business and related resources from the Roll Form Group, a Division of Samuel, Son & Co., Limited. It is anticipated that the transaction will be completed on January 31, 2014, after which this business will be incorporated into the operations of the Company's exterior building products division, Vicwest Building Products.
The acquisition substantially increases Vicwest Building Products' presence in the steel deck market, improves economies of scale for the Company's recently rationalized manufacturing footprint, enhances its sales team, and creates additional opportunities to grow in commercial, industrial, institutional, residential and agricultural construction markets.
"This acquisition increases our customer base, adds another deck profile to our catalogue, and consolidates an important market for our building products business," said Colin Osborne, President and CEO of Vicwest Inc. "We believe this transaction will bring greater discipline to a marketplace that has under-performed since the recession, and continues to be very challenging, trending at levels well below historical norms. This consolidation will improve our position in the market, add volume in the short term, and provide even greater upside when the domestic non-residential market recovers."
The acquired composite floor deck product line is widely recognized in Canada for its loading performance, which makes it ideal for high rise, heavy traffic and residential construction. The acquired roof deck is designed for flat-roof construction and is available in standard, larger span and acoustic profiles. Both product lines complement and broaden the Company's existing solutions for the building envelope and will be rebranded under the Vicwest banner.
"The integration of these product profiles will be seamless, meaning our customers can rely on us to deliver on time and to the exacting quality standards they demand," said Paul Lobb, President and General Manager of Vicwest Building Products. "By living up to this commitment, we hope to be of broader service through our portfolio of other engineered solutions including our current deck product line and our market-leading metal roofing and cladding, insulated metal panels, and architectural panels. We're also very pleased to add strength to our team through this acquisition, which should help us to improve our market penetration, particularly in Quebec and the Maritime provinces."
As a result of the acquisition, Vicwest Building Products will substantially increase its Canadian revenues from deck products. The purchase price was not disclosed but included the acquisition of inventory, goodwill and receivables and was not material to Vicwest Inc.
"This transaction is beneficial to both parties as it allows Roll Form Group and Vicwest Building Products to bring greater focus to core markets where we have discernable competitive advantages," said Rick Balaz, President of Roll Form Group. "We are particularly pleased that building product customers will be well served going forward. This was one of our primary prerequisites in making this divestiture."
ABOUT VICWEST INC.
Vicwest Inc. is a leading manufacturer and distributor of engineered storage and handling systems for grain, fertilizer and liquid storage as well as building construction products for agriculture, 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.
ABOUT VICWEST BUILDING PRODUCTS
Vicwest Building Products is one of North America's leading manufacturers and distributors of exterior building products, including metal roofing, siding, decking, insulated metal panels and architectural panels. Founded in 1905, it offers a wide and trusted range of products for the residential, industrial, commercial, institutional and agricultural construction markets. For more information, visit www.vicwest.com.
ABOUT THE ROLL FORM GROUP
The Roll Form Group (RFG) is a division of Samuel Son & Co., Limited, one of the largest metal Service Center and Industrial Products Groups in North America. RFG can offer a wide range of services unequaled in the industry. Combined, the Roll Form Group's manufacturing facilities include over 400,000 sq. ft. of production floor space with production lines including cold forming mills, in line notching, piercing, and punching. In addition, separate fabricating bays include shearing, brake forming, MIG and TIG welding, plasma cutting, precision drilling and assembly. As a Group we supply all major industries including commercial and residential building, architectural roofing and cladding, rail and road transport and heavy construction products. For more information, visit www.rollformgroup.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 may include comments with respect to the Company's objectives, strategies to achieve those objectives, potential acquisitions, expected financial results, and the outlook for the business of the Company including the benefits of this acquisition. 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 news 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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Tel: (905) 469-5700