Business
AirBoss of America Corp. To Acquire Flexible Products Co.
NEWMARKET, ON , Sept. 30, 2013 /CNW/ - AirBoss of America Corp. (TSX:BOS) (the "Company"...
About this update from Airboss Of America Corporation
[{"type":"text","content":"\n\n\nNEWMARKET, ON, Sept. 30, 2013 /CNW/ - AirBoss of America Corp. (TSX:BOS)\n (the \"Company\" or \"AirBoss\"), announced today that it has entered into\n an agreement to acquire all the shares of Flexible Products Co.\n (\"Flexible Products\"), a privately-owned U.S. company that is a leading\n supplier of innovative and cost-effective anti-vibration solutions to\n the North American automotive market. The acquisition is expected to be\n immediately accretive to the Company's earnings and cash flows.\n Flexible Products is expected to generate sales of between US$100 and\n $110 million and Earnings before Interest, Taxes, Depreciation and\n Amortization (\"EBITDA\") of between US$8 and $9 million for the year\n ended December 31, 2013. We welcome the management team and employees\n of Flexible Products to the AirBoss group of companies and look forward\n to their continuing commitment to customer service.\n\n\nAirBoss will acquire Flexible Products through an all cash transaction\n valued at approximately US$51 million, subject to working capital\n adjustments. The acquisition is expected to be immediately accretive to\n the Corporation's earnings per share and free cash flow per share.\n\n\n\"We are pleased to announce the strategic acquisition of Flexible\n Products, which will provide an expanded product offering and\n diversification of revenue and cash flow\" said Mr. Robert Hagerman,\n President and CEO of AirBoss. \"We believe Flexible Product's\n anti-vibration solutions are well positioned to benefit from future\n trends in the automotive market, most notably the demand for higher\n fuel efficiency driving the increased use of new powertrain\n technologies, engine downsizing and high strength steels and\n alternative materials.\"\n\n\nDoug Reid, the President of Flexible Products stated, \"I am proud of the\n significant growth and development of Flexible Products over the years.\n The dedication of our people has enabled Flexible Products to become a\n leader in the automotive anti-vibration solutions market and we see the\n sale to AirBoss as the natural progression to further growth. Our\n company has had several opportunities to accelerate its growth by\n supporting its customers in other geographic regions such as Mexico,\n South America and Asia. AirBoss has the scale and capital required to\n take advantage o...