CALGARY,
Sept. 1, 2014 /CNW/ - Stuart Olson
Inc. ("Stuart Olson" or the "Company") (TSX:SOX) announced today
that it has completed the sale of Broda Construction Inc. ("Broda")
to TriWest Capital Partners and senior management of Broda for
gross cash proceeds of $39 million.
Broda is a heavy construction company specializing in aggregate
processing, earthwork, civil construction, and concrete production.
Stuart Olson acquired Broda in
2010.
Mr. David LeMay,
President and Chief Executive Officer of Stuart Olson said, "The divestiture of Broda is
the result of a strategic review undertaken to assess our assets
and their utilization in the context of our broader business
strategy going forward. The proceeds from the sale of Broda will
allow us to strengthen our balance sheet and increase our financial
flexibility to fund growth initiatives more closely aligned with
our strategy of becoming a fully integrated construction
company."
Net proceeds of the sale will initially be used
to repay outstanding indebtedness under the Company's revolving
credit facility. The transaction closed on September 1, 2014 and is subject to normal and
customary post-closing balance sheet adjustments.
TD Securities Inc. acted as exclusive financial
advisor to Stuart Olson in
connection with this transaction.
Stuart Olson
expects its third quarter 2014 financial results to include a
non-cash investment loss related to the sale of Broda of between
$19 and $21 million. This loss
will be reflected in discontinued operations. The exclusion
of Broda's operating results on a go forward basis is not expected
to have a material impact on future reported consolidated net
earnings or earnings per share for Stuart
Olson.
About Stuart
Olson
Stuart Olson
provides building construction, commercial and industrial
electrical contracting, and industrial insulation services to an
array of public and private sector clients. The Company
operates office locations throughout British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. Stuart
Olson common shares and convertible debentures are listed on
the Toronto Stock Exchange under the symbols "SOX" and "SOX.DB",
respectively. www.stuartolson.com
Forward Looking Information
This press release contains certain statements
that may constitute forward-looking information within the meaning
of applicable securities laws. This forward looking information
includes, without limitation, statements relating to the Company's
business strategy, use of proceeds from the sale of Broda, the
Company's financial strength and management's views on the impact
of the non-cash loss from the sale of Broda on the Company's
consolidated financial results. Often, but not always,
forward-looking information can be identified by the use of such
words as "may", "will", "expect", "believe", "plan", "intend",
"estimate", "outlook", "forecast", "should", "anticipate" and other
similar terminology, including statements concerning possible or
assumed future results. Forward-looking information is based on
management's reasonable assumptions, analysis and estimates in
respect of its experience and perception of trends, current
economic conditions, government policies and expected developments,
as well as other material factors that it considers to be relevant
at the time of making such statements.
The forward-looking information in this press
release is included solely for the purpose of assisting investors
in understanding the Company's financial position and the results
of its operations as at the date hereof. By its nature,
forward-looking information involves known and unknown risks and
uncertainties, which give rise to the possibility that management's
assumptions, analysis and estimates will be incorrect and that the
Company's anticipated results will not be achieved. Although the
Company believes that the statements with respect to
forward-looking information are reasonable and current, such
statements should not be interpreted as a guarantee of future
performance or results, and will not necessarily be an accurate
indication of whether or not such results will be achieved.
Forward-looking information is necessarily subject to a number of
factors that may cause actual results to differ materially from
those results implied by the expectations suggested by such
information. Those factors include, without limitation, the risks
and uncertainties described in the Company's Annual Information
Form filed with the securities regulatory authorities
in Canada under the
Company's profile at www.sedar.com. Readers are
encouraged to consider the foregoing risks and other factors
carefully when evaluating the forward-looking information and are
cautioned not to place undue reliance upon such information when
making investment decisions.
The forward-looking information in this press
release is current to the date hereof, and is subject to change
following such date. While the Company may elect to do so,
unless required by applicable law, it undertakes no obligation to
update this information to reflect new information or circumstances
at any particular time.
SOURCE Stuart Olson Inc.