MAAX Completes the Acquisition of Aker Plastics
SAINTE-MARIE, QUEBEC--OCTOBER 28, 2002 - 11:47 EST
MAAX Inc. (TSX: MXA) announces it has
finalized the acquisition of the shares of Aker Plastics Company,
Inc., the third largest manufacturer of fiberglass bathroom
products in the United States.
Solidly established since 1967, Aker Plastics also manufactures
acrylic bathroom products. It operates three plants: one in
Martinsburg, West Virginia, and two in Plymouth, Indiana. Together
they cover a total area of 365,000 square feet and employ some 800
people. The Company serves a distribution network of plumbing
wholesalers and benefits from an excellent reputation for quality
and service.
The transaction is for a total consideration of US$78 million
subject to certain adjustments, including US$64 million on the
closing and US$14 million in notes payable over a three-year
period. The outlays are being assumed directly out of MAAX's cash
and cash equivalents. The transaction is retroactive to September
1st, 2002, and Aker's experienced management team is staying in
place.
"We are very happy about this transaction which meets our
acquisition and financial criteria," indicated Placide Poulin,
MAAX's Chairman of the Board.
Aker will add some US$75 million (Cdn$110-115 million) to MAAX's
annual business volume while also contributing positively to the
Company's profitability.
Andre Heroux, President and Chief Executive Officer at MAAX,
specified: "This acquisition holds many strategic advantages and
we have already mapped out an integration plan to optimize its
commercial, manufacturing and operational synergies over a period
of 12 to 18 months."
/T/
The primary advantages of this acquisition consist of:
* the strengthening of MAAX's geographical presence in the U.S.
Northeast and Midwest;
* the addition of a brand proven for over 35 years throughout a solid
distribution network of plumbing wholesalers;
* the launch of several of MAAX's product lines within Aker's
distribution network, including shower doors and acrylic products;
* the distribution of Aker's products to other regions in the United
States; and
* considerable savings in operating costs.
/T/
Management estimates this acquisition should bring MAAX's
consolidated sales for fiscal 2002-2003 to some $615 million and
its earnings per share before amortization of goodwill to the
$1.40 to $1.45 range.
A conference call will be webcasted simultaneously on
www.q1234.com and www.maax.com at 10:00 a.m. on October 28, 2002,
and will be available subsequently at both websites.
MAAX Inc. is a leading North American manufacturer of bathroom
products and accessories, spas and kitchen cabinets. The Company
currently employs 3,600 people in 26 plants and distribution
centres across Canada, the United States and Europe. Its common
shares are traded on the Toronto Stock Exchange under the ticker
symbol MXA.
PROSPECTIVE FINANCIAL INFORMATION
This press release includes forward-looking statements that
involve a number of risks and uncertainties. The Company would
like to point out that its results, or the measures it adopts,
could differ materially from those indicated or underlying these
statements, or could have an impact on the realization of a
particular financial projection. |
