Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) today announces that it has closed its previously announced transaction to acquire Vega Industries Limited (“Vega”). The purchase price is NZD $12.0 million (USD $9.0 million) subject to certain adjustments and escrow holdbacks.
Vega, with revenues of approximately NZD $7.7 million (USD $5.8 million) in its fiscal year March, 2017, will be maintained as a wholly owned subsidiary of Carmanah at its base of operations in Porirua, New Zealand. The acquired business will operationally report to Sabik Marine OY based in Porvoo, Finland. Integration plans, with a specific focus on providing marine aids-to-navigation customers comprehensive single-source solutions, are expected to be implemented over the coming months.
As of July 31, 2017, Vega’s estimated balance sheet is comprised of approximately NZD $3.5 million (USD $2.6 million) of working capital, NZD $3.6 million (USD $2.7 million) of fixed assets including land and buildings. Vega had negligible net debt on the closing date.
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About Carmanah Technologies Corporation
Carmanah designs, develops, and distributes a portfolio of products focused on energy-optimized LED solutions for infrastructure. Since 1996, we have earned a global reputation for delivering durable, dependable, efficient, and cost-effective solutions for industrial applications that perform in some of the world’s harshest environments. We manage our business within two reportable segments: Signals and Illumination. The Signals segment serves the Airfield Ground Lighting, Aviation Obstruction, Offshore Wind, Marine, and Traffic markets. The Illumination segment provides solar-powered LED outdoor lights for municipal and commercial customers.
Contact
Carmanah Technologies Corporation:
Evan Brown,
250 380 0052
Chief Financial Officer/Corporate Secretary
investors@carmanah.com
This release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “expects,” “estimates,” “could,” “will” or variations of such words and phrases. Forward-looking statements or information in this news release relate to, among other things: the expected benefits of the acquisition of Vega, the timing and expectations with respect to the integration of Vega,,revenues, and revenue growth order backlogs; gross margins; and estimates of EBITDA and Adjusted EBITDA. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Carmanah,Sabik or Vega to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to: our ability to successfully complete the integration of Vega, the results of our post-closing financial review of Vega’s working capital and financial statements, our ability to become a worldwide leader in the marine aids to navigation industry, the potential growth of the offshore wind safety market or our ability to participate in any growth, and other general uncertainties that may impact actual outcomes. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions, and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. Actual results could differ materially from such forward-looking statements. Carmanah disclaims any obligation to update, or to publicly announce, any such statements, events, or developments except as required by law.
For additional information on these risks and uncertainties, see Carmanah’s most recently filed Annual Information Form (AIF) and Annual MD&A, which are available on SEDAR at www.sedar.com and on the Company’s website at www.carmanah.com. The risk factors identified in Carmanah’s AIF and MD&A are not intended to represent a complete list of factors that could affect Carmanah.