Mosaic Capital buys Cedar Infrastructure Products for $18.3 mln

Canadian private equity firm Mosaic Capital Corp has acquired a 75 percent interest in Cedar Infrastructure Products Inc for about $18.3 million. Based in Vaughan, Ontario, Cedar is a distributor of municipal iron castings, concrete pipe, pre-cast products and other specialty materials to service the road, water and sewer infrastructure and residential construction industries. Matthew Genovese and Tony Maio, the company’s founders, said the deal will help grow Cedar’s product line, customer base and geographic footprint. Cedar is Calgary-based Mosaic’s second acquisition to date in Ontario.

PRESS RELEASE

Mosaic Capital Completes Acquisition of Ontario-Based Cedar Infrastructure Products

CALGARY, May 1, 2017 /CNW/ – Mosaic Capital Corporation (“Mosaic”) (TSX-V Symbols: M, M.DB) is pleased to announce that it has successfully completed the acquisition of a 75% interest in the business being carried on by Cedar Infrastructure Products, Inc. (“Cedar”). The remaining 25% is being retained by its founders, Matthew Genovese and Tony Maio.

Cedar is a distributor of municipal iron castings, concrete pipe, pre-cast products and related specialty items to service the road, water and sewer infrastructure and residential construction industries. Established in 2000 and with headquarters in Vaughan, Ontario, Cedar serves a broad group of contractors and municipalities in the Greater Toronto Area and Southwestern Ontario regions.

Mosaic’s cost of the acquisition was $18.3 million, subject to typical post-closing adjustments and was funded through a combination of cash ($14.0 million) and vendor take-back financing ($4.3 million). The vendor take back financing is payable in full on year three and bears interest at commercial rates. Existing management will remain in place and the transaction includes a three-year earn out provision to be paid to the vendors if the business meets specified financial targets.

Co-founders Tony Maio and Matthew Genovese stated “We are excited to partner with the Mosaic Capital team. With the support of Mosaic’s management depth and financial backing, we are in a strong position to grow Cedar’s product line, customer base and geographic footprint in the future.”

Mark Gardhouse, CEO of Mosaic Capital commented “following our acquisition of Bassi in December of 2016, this acquisition represents Mosaic’s second acquisition in the Ontario market and is consistent with our long-term strategy to add both industry and geographic diversification to our portfolio. This transaction is another example of Mosaic acquiring established and resilient businesses with strong organic growth opportunities that are operated by successful owners and management teams.”

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.

For further information: Cam Deller, Vice President, Corporate Development, Mosaic Capital Corporation, 400, 2424 – 4th Street SW, Calgary, AB T2S 2T4, T: (403) 930-6576, E: cdeller@mosaiccapitalcorp.com

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