ComWest Enterprise Corp (TSXV: CWP) has completed its previously announced acquisition of a 100 percent equity interest in Unisync Group Ltd. The deal, which eventually will see Unisync merged with ComWest’s Peerless Garments LP, is valued at $13 million, including debt. Since 2003, the Mississauga, Ontario-based Unisync, a provider of uniforms, work wear, image apparel and related products, has been a portfolio company of Canadian private equity firm Kilmer Capital Partners. Kilmer will continue to hold an interest in the business.
ComWest Enterprise Announces Completion of Acquisition
VANCOUVER, BRITISH COLUMBIA–(Marketwired – July 2, 2014) – ComWest Enterprise Corp. (TSX VENTURE:CWP)(TSX VENTURE:CWP.A) (the “Company”) is pleased to announce that it has completed the previously announced acquisition of a 100% equity interest in Unisync Group Limited (“Unisync”), Canada’s leading designer, manufacturer and distributor of direct sale uniforms, workwear, image apparel and related solutions. The transaction is valued at approximately $13,000,000, including debt.
In connection with the financing of the acquisition, ComWest has completed the first tranches of a previously announced non-brokered private placement. Under the first tranches, 1,170,000 Class A restricted equity shares were issued at a price of $1.50 per share for gross proceeds of $1,755,000.
All shares issued under the private placement are subject to a restricted period that will expire four months after the issuance date. Insiders purchased 484,400 of the Class A restricted equity shares under the first tranches of the private placement.
The private placement is subject to final acceptance by the TSX Venture Exchange.
ComWest’s business is now comprised of its 90% partnership interest in Peerless Garments LP based in Winnipeg, Manitoba, and its wholly owned subsidiary, Unisync Group Limited. Unisync’s head office is located in Mississauga, Ontario, with a 100,000 square foot world-class distribution centre located in Guelph, Ontario and a satellite distribution facility and sales office in Calgary. Further particulars on both Peerless and Unisync were set out in the June 25, 2014 news release announcing the acquisition ( http://www.sedar.com ). Revenues for Unisync during its last fiscal year ended September 30, 2013 were $21.3 million.
ComWest has paid a regular quarterly dividend since its acquisition of Peerless in August 2010. The second quarterly dividend for 2014, which would normally have been paid in June, was suspended to accommodate the acquisition of Unisync and minimize dilution to existing shareholders. The Board expects to re-instate a regular quarterly dividend after the following quarter, subject to available cash resources.
ON BEHALF OF THE BOARD
Douglas F. Good, President
This news release contains forward-looking statements regarding the future success of the business of the Company that is subject to risk and uncertainties. Examples of such forward-looking statements including, but are not limited to, statements concerning future private placements and the payment of future dividends. These forward-looking statements involve known and unknown risk and uncertainties that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. These risks include risks related to the acquisition, risks related to newly acquired businesses, uncertainty and dilution of additional financing and ability to service debt, as well as the risk factors described in the Corporation’s Management Discussion and Analysis filed on SEDAR at www.sedar.com. The forward-looking statements contained herein are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ComWest Enterprise Corp.
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