Business
Exchange Income Corporation Completes Acquisition of Window Installation Specialists, Inc.
Exchange Income Corporation Completes Acquisition of Window Installation Specialists, Inc....
About this update from Exchange Income Corporation
[{"type":"text","content":"\n\n\n\nExchange Income Corporation Completes Acquisition of Window Installation Specialists, 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, MB, Aug. 4, 2020\n\n\n\nWINNIPEG, MB, Aug. 4, 2020 /CNW/ - Exchange Income Corporation (TSX: EIF) (\"EIC\" or the \"Corporation\") a diversified, acquisition-oriented company focused on opportunities in the aviation, aerospace and manufacturing sectors, announced today it has successfully closed the acquisition of all of the issued and outstanding shares of Window Installation Specialists, Inc. (\"WIS\"), a privately owned US company, for US$45 million, subject to customary post-closing adjustments. \nWIS, founded in 1998 and located in Seattle, Washington, is a full-service glazing company specializing in sales, consultation, installation and service of pre-glazed fenestration products. WIS's operational focus is the United States west coast, specifically Seattle, Washington; Southern California (Los Angeles and San Diego); and the Bay area (Oakland, San Jose, San Francisco). WIS counts Quest as one of its key suppliers, as it has been Quest's glazer in this market for the last decade. Together they provide services under supply and install contracts, where the supply and install each represent a significant portion of the contract. \nThe purchase price of US$45 million was funded by issuance of EIC common shares to the vendor of US$7 million and the Corporation's available cash resources from its unutilized credit facility of US$38 million.  The acquisition is expected to be immediately accretive to EIC's per share metrics and generates a pre-tax return on capital in excess of 20% based on historical results.  WIS has expanded over the past 3 years and at the time of close has a backlog of over 3 times its last year's revenue.\n\"The acquisition of WIS represents a significant strategic investment further vertically integrating Quest's operations. Combined with the acquisition of AWI, we now have considerable breadth of distribution and installation expertise across the US market, simil...