CALGARY, Dec. 5, 2016 /CNW/ - Mosaic Capital Corporation
("Mosaic") (TSX-V Symbols: M, M.PR.A and
M.DB) is pleased to announce that it has successfully
completed the acquisition of a 70% interest in the business being
carried on by Bassi Construction Ltd. and Basscon Group Inc.
(collectively "Bassi"). The remaining 30% is retained
by John Bassi.
Bassi is a 50-year-old multi-discipline commercial and
industrial renovation/tenant refit and construction company with
over 120 employees, headquartered in Ottawa, Ontario. Bassi operates in five
primary divisions: commercial tenant fit-ups & restoration,
specialty, concrete remediation, fire & flood reclamation and
project management. More information about Bassi can be found
at www.bassi.ca.
Mosaic's cost of the acquisition was $24.5 million, subject to typical post-closing
adjustments and was funded through a combination of cash
($21.5 million) and vendor take-back
financing ($3.0 million) which is
payable in full on November 30, 2019
and bears interest at commercial rates. In addition, there is
a three-year earn out provision to be paid to the vendor if the
business meets specified financial targets. Existing management
will remain in place.
John Bassi, President and CEO
stated "I am thrilled to partner with the Mosaic Capital
team. Their professionalism, honesty and work ethic are the
same values that have been a part of the Bassi team for the last 50
years. Mosaic management's depth will make our firm even
stronger and more competitive. I look forward to working
closely with the Mosaic team as we further expand our
business."
Mark Gardhouse, CEO of Mosaic
Capital commented "this acquisition represents Mosaic's first
acquisition in the Ontario market,
another key step in our long term growth and diversification
strategy. We believe this transaction is another example of Mosaic
acquiring strong businesses operated by successful owners and
management teams. We think Bassi has substantial growth potential
in the Ottawa market as well as
other regions of Ontario."
"We are excited about our partnership with Bassi" added
Harold Kunik, President of Mosaic.
"Bassi is well respected in the Ottawa renovation and construction market and
based on its reputation for quality and on-time delivery, has
successfully continued to grow its business. The acquisition
of Bassi is the next step in our multi-phase plan to increase
Mosaic's portfolio representing a diverse range of industries and
geographic locations."
ABOUT MOSAIC CAPITAL CORPORATION
Mosaic is a Canadian investment company that owns a portfolio of
established businesses which span a diverse range of industries and
geographies. Mosaic's strategy is to create long-term value for its
shareholders through accretive acquisitions, long-term portfolio
ownership, sustained cash flows and organic portfolio growth.
Mosaic achieves its objectives by maintaining financial discipline,
acquiring businesses at attractive valuations, performing extensive
acquisition due diligence, utilizing optimal transaction
structuring and working closely with subsidiary businesses after
acquisition.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
FORWARD-LOOKING INFORMATION:
This news release may contain forward-looking information and
statements within the meaning of applicable Canadian securities
laws (herein referred to as "forward-looking statements") that
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. All information and statements in this news release
which are not statements of historical fact may be forward-looking
statements. The words "believe", "expect", "intend", "estimate",
"anticipate", "project", "scheduled", and similar expressions, as
well as future or conditional verbs such as "will", "should",
"would", and "could" often identify forward-looking statements. In
particular, forward-looking statements in this news release
include, but are not limited to: statements with respect to the
terms of the acquisition by Mosaic of a 70% interest in the
business carried on by Bassi, the expected continuity of Bassi's
management team and management's belief that Bassi has substantial
growth potential in the Ottawa
market as well as other regions in Ontario. Such statements or information are
only predictions and reflect the current beliefs of management with
respect to future events and are based on information currently
available to management. Actual results and events may differ
materially from those contemplated by these forward-looking
statements due to these statements being subject to a number of
risks and uncertainties.
Undue reliance should not be placed on these forward-looking
statements as there can be no assurance that the plans, intentions
or expectations upon which they are based will occur. By their
nature forward-looking statements involve assumptions and known and
unknown risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions and other
forward-looking statements will not occur. Some of the assumptions
made by Mosaic, upon which such forward-looking statements are
based include, but are not limited to: the business operations of
Bassi will continue on a basis at least consistent with prior
years; there will be reasonable continuity of Bassi's management
team; and future market conditions for Bassi will not be materially
different than anticipated by Mosaic.
A number of factors could cause actual results to differ
materially from those expressed or implied by the forward-looking
statements, including, but not limited to: general business and
economic conditions in geographic areas where Bassi has operations;
pricing pressures and other competitive factors; third parties
failing to honour their contractual obligations with Bassi;
procurement and pricing issues with suppliers; unforeseen cost
overruns on Bassi's projects; legislative or regulatory
developments; the continued availability and cost of qualified
labour; the continued strength of the industries within which
customers of Bassi operate; and the continued ability to secure new
business. Should any of the risks or uncertainties facing Mosaic
and its subsidiaries materialize, or should assumptions underlying
the forward-looking statements prove incorrect, actual results,
performance, activities or achievements could vary materially from
those expressed or implied by any forward-looking statements
contained in this news release. Readers are cautioned that the
foregoing list of risks is not exhaustive. Additional information
on these and other factors that could affect the operations or
financial results of Mosaic and its subsidiaries are included in
Mosaic's annual information form for the year ended December 31, 2015, a copy of which is available
under Mosaic's profile on SEDAR (www.sedar.com).
Although Mosaic believes that the expectations represented by
any forward-looking-statements contained herein are reasonable
based on the information available to it on the date of this news
release, management cannot assure investors that actual results,
performance or achievements will be consistent with these
forward-looking statements. Any forward-looking statements herein
contained are made as of the date of this news release and Mosaic
does not assume any obligation to update or revise them to reflect
new information, events or circumstances, except as required by
law.
SOURCE MOSAIC CAPITAL CORPORATION