Business
Exco Technologies Limited Signs Conditional Agreement to Acquire Privately Held Interior Trim Business
Exco Technologies Limited Signs Conditional Agreement to Acquire Privately Held Interior T...
About this update from Exco Technologies Limited
[{"type":"text","content":"\n\n\n\nExco Technologies Limited Signs Conditional Agreement to Acquire Privately Held Interior Trim Business\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\nExco Technologies Limited Signs Conditional Agreement to Acquire Privately Held Interior Trim Business\nCanada NewsWire\nTORONTO, Feb. 16, 2016\n\n\n\nTORONTO, Feb. 16, 2016 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced that it has signed a conditional purchase agreement to acquire a group of private companies (the \"Target\") organized under the laws of Mexico and Michigan, whereby a wholly-owned U.S. subsidiary of Exco intends to acquire all of the shares of the Target. \n\nThe agreement is subject to receipt of applicable regulatory approvals and other customary closing conditions, as well as the finalization of certain due diligence items to Exco's satisfaction. Exco currently anticipates the conditional elements will be satisfied by March 31, 2016 with closing of the transaction expected immediately following, although there can be no assurance this will occur. \n\nPursuant to the terms of the agreement, the transaction value, excluding assumed debt of US$4 million, totals approximately US$73 million. Assuming the transaction is completed, Exco intends to fund this amount with a combination of cash on hand, part of the proceeds from a new C$100 million committed operating credit facility and notes payable to certain shareholders of the Target, which are due over the subsequent three years. The transaction will not require significant integration or restructuring charges and is expected to be immediately accretive to Exco's earnings per share. The Target generated revenue of approximately C$115 million (equivalent) in 2015. \n\nFounded in the 1990's, the Target is a leading tier 2 supplier of interior trim components to a diversified group of North American automotive customers. Additional details, including the name of the Target will be released after closing, until which time they remain subject to a confidentiality agreement.\n\nExco has gained extensive leather and seat trim expertise ov...