Business
Bri-Chem Corp. closes Weifang Steel Canada Ltd. acquisition
TSX Venture Exchange Symbol "BRY" EDMONTON, Sept. 2 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSX Vent...
About this update from Bri-chem Corp.
[{"type":"text","content":"\n\n\n\nTSX Venture Exchange Symbol "BRY"\n\n\nEDMONTON, Sept. 2 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSX Venture\nExchange: BRY) a leading Canadian wholesale distributor of industrial drilling\nfluids, steel products and services, is pleased to announce that it has\ncompleted the acquisition of Weifang Steel Canada Ltd. ("Weifang"), a Western\nCanadian-based master wholesale distributor of steel products to the oil and\ngas and construction industries. The acquisition of Weifang is expected to add\napproximately $30 million in annual revenues to Bri-Chem and expand and\ndiversify Bri-Chem's wholesale distribution business.\n\n\n"We are very pleased to have completed this acquisition as Weifang adds\nfurther diversification to Bri-Chem's robust market area. We look forward to\nworking together with the Weifang's management team in growing the business,"\ncomments Mr. Don Caron, Chairman of Bri-Chem,\n\n\nNeil Rasmussen, Weifang's President, said, "We believe this transaction\nis a very good fit for our company and we are excited about our contribution\nto the future growth of Bri-Chem."\n\n\nThe total aggregate purchase price of $10,948,906 consists of $7,948,906\ncash payable as to $4,948,906 on closing and $3,000,000 payable as to\n$1,000,000 60 days after the first anniversary of the close of the acquisition\n(the "Closing Date"), $1,000,000 60 days after the second anniversary of the\nClosing Date, and $1,000,000 60 days after the third anniversary of the\nClosing Date and $3,000,000 by way of the issuance of 1,304,348 common shares\nat a price of $2.30 per share. The vendors are also entitled to receive up to\na $450,000 purchase price adjustment, subject to Weifang achieving a certain\nlevel of profitability to closing, to be determined and approved upon Bri-Chem\nreceiving final interim closing financial statements of Weifang.\n\n\nAbout Bri-Chem\n\n\nBri-Chem is a wholesale distributor of industrial drilling fluid supplies\nand steel products and services to the oil and gas and construction\nindustries. Bri-Chem provides over 100 domestic and foreign drilling fluid\nproducts to customers throughout Alberta, British Columbia and Saskatchewan\nand distributes drill pipe, carbon steel welded pipe, carbon steel seamless\npipe, stainless steel welded pipe, stainless ...