VANCOUVER, Feb. 15 /CNW/ - WesternOne Equity Income Fund ("WesternOne
Equity") (TSXV: WEQ.UN and WEQ.DB) today announced the signing of acquisition
and related agreements to purchase the assets and the business of Deerfoot
Equipment Rentals Ltd. ("Deerfoot Rentals"), a general equipment rental
company located in Calgary and Lethbridge, Alberta. The agreements contemplate
WesternOne paying at closing a combined purchase price of $13.0 million
(including a $0.9 million capital expenditure adjustment), which is subject to
additional post closing adjustments (the "Acquisition"). The transaction is
expected to be completed, subject to the execution of additional agreements,
on or before February 18, 2008.
Deerfoot Rentals is a leading player in the Southern Alberta equipment
rental industry. Management of Deerfoot Rentals is focussed on increasing its
share of residential, commercial and infrastructure construction equipment
rentals within the Calgary and Lethbridge markets and beyond.
Deerfoot Rentals is a Volvo Rents franchisee in its current markets and
has the option to open additional Volvo Rents franchise locations in Saskatoon
and Regina, Saskatchewan.
WesternOne Equity will pay for the Acquisition using a combination of
existing cash, debt financing under an existing credit facility and the
issuance of 125,000 exchangeable units convertible to public units of
WesternOne Equity on a one-for-one basis. This investment is expected to be
accretive to WesternOne Equity's unitholders, with $2.9 million in EBITDA for
the twelve months ended December 31, 2007.
Mr. Darren Latoski, CEO of WesternOne Equity, states "this Acquisition
provides an additional platform rental business, an experienced in-place
management team within the Southern Alberta market, and an excellent fit to
our existing rental platform business in British Columbia. We will continue to
look to consolidate in this and other industries in the future."
About WesternOne Equity
WesternOne Equity has been established to seek out and acquire
predominantly privately owned 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 appreciation.
Additional information about WesternOne Equity is available at www.weq.ca
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
Equity'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,
seasonality, 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
Equity's management believes to be reasonable assumptions, WesternOne Equity
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 Equity assumes no obligation to
update or revise them to reflect new events or circumstances, other than as
required by law.
THE TSX VENTURE 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, or
Carlos Yam, Chief Financial Officer, WesternOne Equity Income Fund, Suite 910,
925 West Georgia Street, Vancouver, BC, V6C 3L2, Phone: (604) 678-4042,
E-mail: email@example.com or firstname.lastname@example.org