TORONTO, Jan. 14, 2013 /CNW/ - Exco Technologies
Limited (TSX-XTC) today announced that it has completed the
acquisition of BE & H Extrusion Dies Inc. - an extrusion die
manufacturer located in Wylie
Texas which services the south-central region of
the United States. The transaction
was an asset purchase for cash consideration of approximately
$1.5 million. The acquisition,
to be operated as Exco Texas, secures for Exco an experienced
workforce and a strong presence in an important geographic market
segment where proximity to customers is key. The
acquisition is expected to increase Exco's extrusion group sales by
approximately 5% with the expectation of further growth in that
region as Exco develops the business over the coming years.
The operating results are expected to be accretive in the first
year of operation.
Exco currently services the North American
extrusion tooling market from a plant in Markham Ontario and a plant in Chesterfield Michigan. The acquisition
of Exco Texas, in addition to bolstering our presence in the
south-central region of the United
States, will provide additional and much needed capacity to
the group in order to meet the resurgent demand for extrusion dies
as the US recovery continues to take root.
Exco Technologies Limited is a global
supplier of innovative technologies servicing the die-cast,
extrusion and automotive industries. Through our 11 strategic
locations, we employ 2,213 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 completion dates, investment
amounts and Exco Texas sales levels and market penetration in the
south-central region of the United
States 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 2012 Annual Report, in our
2012 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