Business
Decisive Dividend Corporation Announces Proposed Acquisition of Northside Industries and New Debt Financing
(via TheNewswire) August 8, 2019 - TheNewswire - Kelowna, British Columbi...
About this update from Decisive Dividend Corp.
[{"type":"text","content":"Decisive Dividend Corporation Announces Proposed Acquisition of Northside Industries and New Debt Financing(via TheNewswire)\n \n \nAugust 8, 2019 - TheNewswire - Kelowna, British Columbia - Decisive Dividend Corporation (TSXV:DE) (\"Decisive\" or the \"Company\"), an acquisition-oriented company, is pleased to announce the proposed acquisition of 0854851 B.C. Ltd. (the \"Proposed Acquisition\"), which operates as Northside Industries (\"Northside\").\n\n \n \nNorthside, a specialty manufacturing company based in West Kelowna, British Columbia, is a full-service provider of welding and fabrication solutions for a diverse number of industries. The primary focus of Northside is in the commercial vehicle and forestry sectors, however Northside also has exposure to the agriculture, environmental, and oil and gas sectors, among others.\n\n \n \nNorthside has a strong management team in place, led by its President, Mr. Mark Burleigh, who has committed to remain President of Northside following the acquisition. Northside's founder, Mr. Steve McKay, will remain on a transition services agreement for a minimum of one year after the acquisition. \n\n \n \nThe Proposed Acquisition is anticipated to have a positive financial impact on Decisive as it is expected to result in an increase in sales, gross profit, profit before taxes, and Adjusted EBITDA, which is a non-GAAP financial measure used by Decisive. For the trailing twelve-month period ended March 31, 2019, Northside generated the following (unaudited) financial results:\n\n \n \n\nClick Image To View Full Size\n\n \n \n* See \"Non-GAAP Financial Measures\" below. \n\n \n \nFor further information regarding certain (unaudited) historical financial information concerning Northside (as well as Decisive and its current operating subsidiaries) and the combined pro forma historical financial results, please see \"Supporting Schedules\" at the end of this press release.\n\n \n \nThe Proposed Acquisition is subject to the terms and conditions of a share purchase agreement which provides for a base purchase price of $12.0 million, subject to customary adjustments, plus up to an additional $4.0 million contingent on Northside meeting certain earnings targets over the next three years. On closing, the $12.0 million base purchase price (subject to adjustment) will be paid $10.8 million in cash (...