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Exchange Income Corporation Acquires Quest Window Systems Inc.
Exchange Income Corporation Acquires Quest Window Systems Inc. Canada NewsWire W...
About this update from Exchange Income Corporation
[{"type":"text","content":"\n\n\n\nExchange Income Corporation Acquires Quest Window Systems Inc.\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nWINNIPEG, Nov. 14, 2017\n\n\n\nWINNIPEG, Nov. 14, 2017 /CNW/ - Exchange Income Corporation (TSX: EIF) (\"EIC\" or the \"Corporation\"), a diversified, acquisition-oriented company announced today that it has successfully closed the acquisition of the business of Quest Window Systems Inc. (\"Quest\") for a purchase price of $85 million, subject to customary post-closing adjustments, which can increase to $100 million if post-closing growth targets are met. \n\nQuest, headquartered in Mississauga, Ontario is a leading manufacturer of an advanced unitized window wall system used primarily in high-rise multi-family residential projects in Canada and the United States. Quest's ECOWALL system is a ready to install, pre-glazed and highly customizable modular product that has been used in buildings in major North American cities, including Toronto, Vancouver, Los Angeles, San Francisco, New York, Seattle and Chicago. \n\nThe base purchase price of $85 million was funded by the issuance of EIC common shares to the vendors representing $12.75 million and the Corporation's available cash resources from its currently unutilized credit facility representing $72.25 million. The earn-out of $15 million will be paid within 24 months of closing subject to meeting post-closing growth targets. Post-acquisition EIC remains in a solid financial position with significant capacity remaining in its credit facility. Accordingly, there is no requirement for the Corporation to issue any additional equity to complete this acquisition.\n\nQuest earned EBITDA of over $15M for the fiscal year ended August 31, 2017 and will generate a pre-tax return on invested capital of 17% based on historical results. The acquisition is expected to be immediately and significantly accretive to EIC's earnings and free cash flow while materially reducing our payout ratio. Based on Quest's historical results EIC's adjusted earnings per share (adjusting for intangible a...