VANCOUVER, Oct. 1 /CNW/ - WesternOne Equity Income Fund ("WesternOne")
(TSX: WEQ.UN and WEQ.DB) today announced the completion by one of its indirect
subsidiaries of the purchase of the assets of Sure-Fire Propane Ltd. and Davis
Heater Service Ltd., an equipment rental, construction heat and propane
distribution business with locations in Edmonton and Calgary. The purchase
price was $24.4 million, which is subject to post-closing adjustments (the
WesternOne paid for the Acquisition using a combination of cash and debt
financing under an existing credit facility. This transaction is expected to
be immediately accretive to WesternOne's unitholders and will reduce
WesternOne's payout ratio. The business earned approximately $6.0 million in
adjusted EBITDA for the twelve months ended December 31, 2007.
Mr. Darren Latoski, CEO of WesternOne, stated, "This acquisition of a
market leader in the Northern Alberta equipment rental, construction heat and
propane distribution industry for over 30 years will increase WesternOne's
presence in Alberta's robust construction and infrastructure markets and
further geographically and seasonally diversify WesternOne's revenue streams.
This Acquisition is an excellent and opportune fit to our existing operations.
As well as adding a new and complementary platform in the business of propane
distribution, the Acquisition coincides with the start of the peak winter
season for construction heat and propane distribution, further balancing the
seasonality of WesternOne's revenue stream across all segments."
"The Acquisition provides WesternOne with a strong identity and an
experienced management team with more than 73 years of combined experience,
who will remain with the business after the Acquisition is completed.
Acquiring the talent, relationships and experience of a management team of
this caliber is rare, and provides WesternOne with a significant competitive
advantage that cannot be readily duplicated."
For additional financial and acquisition information, please refer to
WesternOne's Material Change Report dated September 25, 2008 and filed on
Forward Looking Statements
Certain statements in this press release may constitute "forward-looking"
statements that involve known and unknown risks, uncertainties and other
factors that may cause our actual results, performance or achievements or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. When used in this press release, such statements often use, but
are not limited to, such words as "may", "will", "expect", "should",
"believe", "intend", "plan", "anticipate", "potential", and other similar
terminology. These statements reflect current expectations of WesternOne's
management regarding future events and operating performance and speak only as
of the date of this press release. Forward-looking statements involve
significant risks and uncertainties, should not be read as guarantees of
future performance or results, and will not necessarily be accurate
indications of whether or not such results will be achieved. A number of
factors could cause actual results to differ materially from the results
discussed in the forward-looking statements, including, but not limited to,
the following factors: competitive and economic environment, impact of changes
to tax treatment of income trusts or dividend tax credits, foreign exchange,
input pricing, seasonality and weather, supply disruptions, inability to close
or realize accretive benefits from acquisitions, fluctuation of cash
distributions, nature of trust units and unfavourable changes in capital
markets. Although the forward-looking statements contained in this press
release are based upon what WesternOne management believes to be reasonable
assumptions, WesternOne cannot assure investors that actual results will be
consistent with these forward-looking statements. These forward looking
statements are made as of the date of this press release and WesternOne
assumes no obligation to update or revise them to reflect new events or
circumstances, other than as required by law.
WesternOne seeks to acquire equipment and infrastructure related
businesses located primarily in the Western Canadian provinces of British
Columbia, Alberta and Saskatchewan, in order to generate stable and growing
distributions to its unitholders as well as to achieve overall capital
Additional information about WesternOne is available at www.weq.ca or
THE TSX EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR
THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
For further information:
For further information: Andrew Greig, Manager of Investor Relations,
WesternOne Equity Income Fund, Suite 910, 925 West Georgia Street, Vancouver,
BC V6C 3L2, Phone: (604) 678-4042, E-mail: firstname.lastname@example.org, www.weq.ca