Business
Bri-Chem Corp. closes Millennium Technologies Ltd. acquisition
Bri-Chem Corp. closes Millennium Technologies Ltd. acquisition.
About this update from Bri-chem Corp.
[{"type":"text","content":"\n\n\n\nTSX Venture Exchange\n\n\nSymbol "BRY"\n\n\nEDMONTON, July 19 /CNW/ - Bri-Chem Corp. (the "Bri-Chem") (TSX Venture\nExchange: BRY) a leading Canadian wholesale distributor of drilling fluids,\nproducts and services, is pleased to announce that it has completed the\nacquisition of Millennium Technologies Ltd. ("Millennium"), a Western\nCanadian-based full-service chemical products wholesaler. The acquisition of\nMillennium is expected to add approximately $12 million in annual revenues to\nBri-Chem and strengthen its overall sales and technical staff.\n\n\nSince 1999, Millennium has developed a diversified product mix and\ncurrently supplies over 200 drilling fluid, environmental and production\nchemical products to a customer base primarily located in the Western Canada.\n\n\n"The acquisition of Millennium and its operations in Saskatchewan bring\nus a step closer to providing complete territorial coverage for our customers\nalong with inventory warehouse consolidation," comments Mr. Alan Campbell,\nChief Executive officer of Bri-Chem, "Millennium is an exceptional fit for our\ndrilling fluids division and will provide efficiencies to overall customer\nservice."\n\n\nMr. Trent Abraham, General Manager of Millennium and who now joins\nBri-Chem commented, "This transaction gives Millennium customers the\nopportunity to continue their expansion into the oil and gas markets. I am\nmotivated by the growth opportunities presented by this transaction and look\nforward to continuing my relationship with Millennium's customers as a member\nof the Bri-Chem team."\n\n\nThe total purchase price of $4,440,000 consists of $2,940,000 cash\npayable as to $2,640,000 on closing, $300,000 fourteen months from closing and\n$1,500,000 by way of the issuance of 714,286 common shares at a price of $2.10\nper share. The acquisition also incorporates 100,000 share purchase warrants\nissued to the vendors. Each share purchase warrant entitles the holder to\npurchase one common share of Bri-Chem at a price of $2.10 per common share for\na period of three years from July 17, 2007. The parties agreed to amend the\noriginal purchase price terms from $4,500,000 to $4,440,000 and the share\nissuance and warrant exercise price from $2.50 to $2.10.\n\n\nAbout Bri-Chem\n\n\nBri-Chem operates out ...