OAKVILLE,ON, May 10, 2013 /CNW/ - Vicwest Inc. (the "Company") (TSX: VIC, VIC.DB) today announced that its Westeel division has gained important new capabilities to serve its global agricultural customers through the strategic acquisition of PTM Technology of Este, Italy.
A profitable private company founded in 1994, PTM Technology engineers, designs and manufactures a broad range of automated grain handling systems including chain, bucket and belt conveyors, grain sampling and dust collection equipment. PTM's highly engineered, value-added products complement Westeel's market-leading family of grain storage systems and enable Westeel to deliver a more comprehensive offering to its global customer base in over 30 countries.
"Though small in scale, this acquisition is transformational for Westeel in that it positions us as one of a few integrated, turn-key suppliers of core grain storage and handling systems in the world with full control over proprietary intellectual property," said Colin Osborne, President and CEO of Vicwest Inc. "Not only does this transaction provide us with our first manufacturing platform in Europe, it is also a meaningful step in the execution of our stated strategy for growth. PTM Technology dramatically improves our competitiveness in global agriculture markets."
PTM has 30 skilled employees, including extensive engineering capability, and operates a 41,000 square foot flexible manufacturing facility with a high degree of plant automation, and integrated information and proprietary on-line quoting systems. Its current configuration provides a meaningful opportunity for volume expansion without significant capital investment.
"Combining our product lines as well as our engineering capabilities creates significant synergies for both businesses, driving increased sales, allowing Westeel to capture more margin on international projects, and offering a more integrated solution to our North American customer base," said André Granger, President of Westeel. "We are particularly pleased to welcome Antonio Marchetti, Gigliola Zizioli and the entire PTM team to Westeel. We have worked side-by-side on customer projects in the past and these experiences give us full confidence in our ability to quickly achieve deep product and operational integration."
With its sales and engineering capability in Madrid, newly opened office in Mumbai, and now PTM, Westeel continues to build critical mass in key overseas markets, and position itself as one of a handful of companies that will benefit from the secular trend for continued investment in post-harvest infrastructure on a global basis.
The acquisition was funded through the Company's revolving credit facility. Terms of the acquisition were not disclosed.
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, the Company is 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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