Attention Business Editors:
Virtek Announces Acquisition of LaserTechniek
Toronto Stock Exchange: VRK
WATERLOO, ON, Oct. 19 /CNW/ - (TSE:VRK) Virtek Vision International Inc.,
a leading developer of laser technology, is pleased to announce that it has
closed an agreement to purchase LaserTechniek B.V.B.A., a Belgium based laser
systems company.
LaserTechniek had sales of approximately $1.5 million in its latest
fiscal year, representing an increase of 100% over sales in the prior year.
The company manufactures and sells equipment for projecting laser templates.
The majority of LaserTechniek's sales are in Europe in applications that
Virtek has not yet addressed including projecting templates for CNC cutting,
concrete forming and recreational vehicle manufacturing.
``This acquisition is an important step in our growth strategy which
includes further penetration of our core markets while developing new vertical
market opportunities', said Jim Crocker, Virtek's President and CEO. ``We
know the best way to grow in Europe is through a strong presence there.
Furthermore, the acquisition of LaserTechniek gives us access to applications
and laser templating technology that helps us open important new doors here in
North America.'
According to the terms of the acquisition, Virtek will pay approximately
$1.2 million through a combination of cash and Virtek shares for 100% of the
issued and outstanding shares of LaserTechniek. In addition, stakeholders of
LaserTechniek are provided the opportunity to receive a further $1.2 million
over the next two years contingent on achieving sales and income based
milestones.
``Being acquired by Virtek gives us the resources we need to continue our
fast growth pace', said Michiel Mirandolle, LaserTechniek's founder and
President. ``Virtek understands our business and shares our business
objectives.' Mr. Mirandolle will continue to run the business after the
acquisition, as General Manager of a new Virtek Subsidiary in Belgium.
The acquisition of LaserTechniek is the second acquisition announced by
Virtek in the past 6 weeks. On August 26, the Company announced that it had
entered into a letter of intent to purchase the aerospace templating business
of GSILumonics, a business several times larger than Virtek's current
aerospace business. The acquisition is expected to close early in the fourth
quarter of Virtek's fiscal year.
``Using lasers to project templates instead of manual set-up or physical
templates is having a huge impact on efficiency and quality in industry,'
added Crocker. ``As outlined in our growth strategy, we are focused on
penetrating new high growth markets like the ones currently addressed by
LaserTechniek.'
Virtek Vision International Inc., through its wholly owned subsidiaries,
Virtek Vision Corp. in Canada and Virtek Vision Inc. in the United States, is
a world-leading supplier of precision laser systems designed to increase
throughout, enhance quality and reduce cost. Applications include the biotech,
aerospace, prefabricated construction and manufacturing industries. Virtek is
based in Waterloo, Canada, with offices near Boston, Massachusetts and London,
England. Virtek trades on the Toronto Stock Exchange and has approximately
14.8 million shares outstanding.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY AND ACCURACY OF THIS NEWS RELEASE.
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