Business
Clarke Inc. announces the sale of its commercial tank and home heating business
HALIFAX , Jan. 30, 2014 /CNW/ - Clarke Inc. (" Clarke ") (TSX: CKI, CKI.DB.A) is pleased...
About this update from Clarke Inc.
[{"type":"text","content":"\n\n\nHALIFAX, Jan. 30, 2014 /CNW/ - Clarke Inc. (\"Clarke\") (TSX: CKI, CKI.DB.A) is pleased to announce that it has entered into\n a definitive agreement to sell its commercial tank and home heating\n business (\"Gestion Jerico\") to TerraVest Capital Inc. (\"TerraVest\").  The transaction values Gestion Jerico at an enterprise value of\n $54.0 million.  Clarke will receive $24.9mn for its 75% interest in\n Gestion Jerico in the form of a 6.5% promissory note with a 3-year\n term.\n\n\nGeorge Armoyan, Chief Executive Officer of Clarke stated: \"We have\n worked with Charles Pellerin and Pierre Fournier to grow Gestion Jerico\n from its roots as a residential oil tank business to a diversified\n residential and commercial tank business. The result is a diversified\n tank business with multiple product lines and 20x the EBITDA as when we\n acquired this business.\"  Mr. Armoyan added: \"We believe this\n transaction strengthens TerraVest, part of which we own, by creating a\n more diversified company, generating cross-selling opportunities and\n other revenue synergies and providing Gestion Jerico with a base of\n operations from which to expand into Western Canada. We wish Charles\n and Pierre and the rest of the team all the best as they join the\n TerraVest organization. We believe this transaction will greatly\n benefit both companies.\"\n\n\nThe acquisition, which is expected to close in February 2014, is subject\n to customary closing conditions for a transaction of this nature,\n including acceptance and final approval by the Toronto Stock Exchange.\n A material change report in respect of this acquisition will be filed\n by Clarke but will not be filed earlier than 21 days prior to the\n closing of the acquisition as Clarke wishes to complete the acquisition\n as soon as commercially feasible once all necessary approvals have been\n obtained.\n\n\nClarke remains focused on creating shareholder value, stream lining its\n asset base and simplifying its financial statements.  The divestiture\n of Gestion Jerico helps accomplish these goals for Clarke, while\n positioning TerraVest for growth.  Following the close of this\n transaction, Clarke continues to own its investment segment and the\n ferry and container shipping units.\n\n\nAbout Clarke\n\n\nHalifax-based Clarke invests in a variety of priva...