Exco Technologies Limited announces closing of South American extrusion tool business acquisition
September 20 2011 - 1:37PM
PR Newswire (Canada)
TORONTO, Sept. 23, 2011 /CNW/ - 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. Exco Technologies Limited
CONTACT: Source: Exco Technologies Limited (TSX-XTC)Contact: Paul
Riganelli, Vice-President, Finance and Chief FinancialTelephone:
OfficerWebsite: (905) 477-3065 Ext 7228http://www.excocorp.com
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