TORONTO, Oct. 1, 2012 /CNW/ - Wheels Group Inc. ("Wheels" or the "Company") (TSXV: WGI), a leading North American 3PL, supply chain logistics provider, is pleased to announce that it has completed the acquisition (the "Transaction") of the business of the MSM Group of Companies ("MSM"), previously announced in the press release of the Company dated August 23, 2012.
"This acquisition provides solid growth opportunities by further enhancing and broadening the service capabilities of Wheels. The increased scale, added transportation lanes and new expertise resulting from the business combination will provide tangible advantages for customers of both Wheels and MSM." said Doug Tozer, CEO of Wheels. "We thank Bob Murray and Mike McCarron, the founders of MSM, for their leadership, and welcome John Abate, Vice President and General Manager of Wheels MSM, who will lead the operations of the acquired business going forward. We are excited to welcome MSM's employees and customers to Wheels."
Founded in 1989, MSM has been recognized in both Canada and the United States as a leading provider of less than full load ("LTL") freight brokerage, LTL consolidation and LTL freight forwarding logistics services. MSM has been named as one of "Canada's 50 Best Managed Companies" for 15 consecutive years. Headquartered in Bolton, Ontario, with US operations strategically located in the Los Angeles basin, MSM provides the ports of Long Beach and Los Angeles, as well as the entire Southern California marketplace, with same-day service and has built high volume consolidation transportation lanes to major Canadian cities as well as select US destinations.
The acquisition was funded from existing cash and the Company's expanded credit facility, previously announced in the press release of the Company dated September 24, 2012, which includes a new $6 million non-revolving term facility.
Founded in 1988, Wheels Group Inc. is a leading North American 3PL, supply chain logistics provider. As a non-asset provider, the Company develops advanced supply chain solutions delivered through its qualified partner network of over 5,000 truck, rail, air, and ocean carriers. Wheels Group Inc. serves consumer goods, food and beverage, manufacturing and retail clients through 20 offices throughout the US and Canada. Wheels Group Inc. has been named one of Canada's 50 Best Managed Companies since 1997, Platinum since 2003. Wheels Group has been named one of North America's Top 100 third-party logistics ("3PL"), one of the Top 100 Food 3PL's and one of the Top Five IMC's (intermodal marketing companies).
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements can be generally identified by the use of words such as "anticipate", "continue", "estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe", and similar expressions. Specifically, forward looking statements in this news release include statements respecting certain future expectations about: prices and demand for services and capital expenditures. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the "RISK FACTORS" section of the Company's latest Annual Information Form and the "RISKS AND UNCERTAINTIES" section of the Company's most recent Management Discussion and Analysis.
Although the Company believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results may be consistent with such forward-looking statements, and they should not be unduly relied upon. With respect to the forward-looking statements contained in this news release, the Company has made assumptions regarding: there being no significant disruptions affecting the Company's operations whether due to labour disruptions, power disruptions, transportation disruptions, damage to equipment, adverse weather conditions or otherwise; the ability of the Company to obtain equipment, transportation, services and supplies in a timely manner to carry out its activities and at prices consistent with current levels or in line with the Company's expectations; the ability of the Company to respond to competitive pressures in the marketplace, including the entry of new competitors, direct marketing efforts by railroads or marketing efforts of asset-based carriers; the ability of the Company to successfully protect its data from cyber-attack; the ability of the Company to maintain or enhance its information technology systems; fuel shortages or fluctuations in fuel prices; the ability of the Company to access tax losses and tax attributes; the ability of the Company to obtain financing on acceptable terms; currency, exchange and interest rates being consistent with current levels or in line with the Company's expectations; and global economic performance, including the financial condition of its customers, particularly, in the retail, consumer products and durable goods sectors.
Except as required pursuant to applicable securities law, the Company disclaims any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.
Further information can be found in the disclosure documents filed by Wheels Group Inc. with the securities regulatory authorities, available under the profile of the Company at www.SEDAR.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Wheels Group Inc.
For further information:
Patrick J Marshall
VP Corporate Development & Investor Relations
Wheels Group Inc.
Tel: (905) 602-2700