Business
Exco Technologies Limited announces purchase of South American extrusion tool business
Jul. 27, 2011 (Canada NewsWire Group) -- TORONTO, July 27, 2011 /CNW/ - Exco Technologies Li...
About this update from Exco Technologies Limited
[{"type":"text","content":"\n\n\n Jul. 27, 2011 (Canada NewsWire Group) -- \n\n#ReleaseContent TABLE\n{\n BORDER-COLLAPSE: collapse\n}\nTR.cnwUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell\n{\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell\n{\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell\n{\n BORDER-BOTTOM: #000000 3px solid\n}\n#ReleaseContent TABLE.cnwBorderedTable TD\n{\n BORDER-RIGHT: black 1px solid;\n PADDING-RIGHT: 2px;\n BORDER-TOP: black 1px solid;\n PADDING-LEFT: 2px;\n PADDING-BOTTOM: 2px;\n BORDER-LEFT: black 1px solid;\n PADDING-TOP: 2px;\n BORDER-BOTTOM: black 1px solid;\n BORDER-COLLAPSE: collapse\n}\n#ReleaseContent TABLE TD\n{\n PADDING-RIGHT: 2px;\n PADDING-LEFT: 2px;\n PADDING-BOTTOM: 2px;\n PADDING-TOP: 2px\n}\n\n\nTORONTO, July 27, 2011 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced that it has entered into an asset purchase agreement\n for the acquisition of a customer's extrusion tool making business\n situated in Colombia.  The acquisition secures for Exco an experienced\n workforce and an agreement to supply the majority of the customer's\n extrusion tooling requirements.  In addition to the all cash purchase\n price of approximately $750,000.00, Exco will move, over the next\n several months, machinery and equipment worth approximately $1 million\n from Exco's recently closed AluDie facility in Canada to Columbia and\n Exco will invest an additional amount of approximately $1 million for\n leasehold improvements and additional machinery and equipment over the\n next year.  The operating results are expected to be accretive in the\n second year of operation.  The agreement is subject to usual conditions\n and is expected to close in October of this year.\n\n\nExco currently exports approximately $5 million worth of extrusion\n tooling to a number of South American countries including Colombia. \n Once Exco has concluded this acquisition and satisfied its supply\n agreement obligations to the Customer it will transfer this business to\n the Colombian facility over the next 2 to 3 years.  This is expected to\n make available some capacity at Exco's remaining Canadian extrusion die...