TORONTO, Sept. 23, 2011 /PRNewswire/ - Exco
Technologies Limited (TSX-XTC) today announced that it has
completed the acquisition of a customer's extrusion tool making
business situated in Colombia. Exco purchased the assets of
this business for cash consideration of approximately $875,000. The acquisition secures for Exco
an experienced workforce and an agreement to supply the majority of
the customer's extrusion tooling requirements. Exco has also
moved machinery and equipment worth approximately $1 million from Exco's recently closed AluDie
facility in Canada to Colombia and Exco will invest an additional
amount of approximately $1 million
for leasehold improvements and additional machinery and equipment
over the next year. The operating results are expected to be
accretive in the second year of operation.
Exco currently exports approximately
$5 million worth of extrusion tooling
to a number of South American countries including Colombia.
Once Exco has satisfied its supply agreement obligations to the
Customer, it will transfer this business to the Colombian facility
over the next 2 to 3 years. This is expected to make
available some capacity at Exco's remaining Canadian extrusion die
facility which can then be used to meet North American demand as
economic conditions improve. It is expected that once this
process is complete, the Colombian business will generate annual
sales of approximately $8 million to $10
million. This is consistent with Exco's goal of pursuing
market share in developing regions and manufacturing in low cost
jurisdictions.
Exco Technologies Limited is a global
supplier of innovative technologies servicing the die-cast,
extrusion and automotive industries. Through our 10 strategic
locations, we employ 1,994 people and service a diverse and broad
customer base.
This news release contains forward-looking
information and forward-looking statements within the meaning of
applicable securities laws. We use words such as "anticipate",
"plan", "may", "will", "should", "expect", "believe", "estimate"
and similar expressions to identify forward-looking information and
statements especially with respect to closing and completion dates,
investment amounts and Exco Colombia sales levels for future
years. Such forward-looking information and statements are
based on assumptions and analyses made by us in light of our
experience and our perception of historical trends, current
conditions and expected future developments, as well as other
factors we believe to be relevant and appropriate in the
circumstances. Readers are cautioned not to place undue reliance on
forward-looking information and statements, as there can be no
assurance that the assumptions, plans, intentions or expectations
upon which such statements are based will occur.
Forward-looking information and statements are subject to known and
unknown risks, uncertainties, assumptions and other factors which
may cause actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed, implied or anticipated by such information
and statements. These risks, uncertainties and
assumptions are described in the Company's Management's
Discussion and Analysis included in our 2010 Annual Report, in our
2010 Annual Information Form and, from time to time, in other
reports and filings made by the Company with securities regulatory
authorities.
While the Company believes that the
expectations expressed by such forward-looking information and
statements are reasonable, there can be no assurance that such
expectations and assumptions will prove to be correct. In
evaluating forward-looking information and statements, readers
should carefully consider the various factors which could cause
actual results or events to differ materially from those indicated
in the forward-looking information and statements. Readers are
cautioned that the foregoing list of important factors is not
exhaustive. Furthermore, the Company disclaims any
obligations to update publicly or otherwise revise any such factors
or any of the forward-looking information or statements contained
herein to reflect subsequent information, events or developments,
changes in risk factors or otherwise.
SOURCE Exco Technologies Limited