Laval, Quebec, August 5, 2010 – Savaria Corporation (TSX: SIS) (“Savaria”), Canada’s leader in personal mobility products, announced today that it has acquired Freedom Motors Inc.,operating under the name Viewpoint Mobility (“Viewpoint Mobility”), and Liberty Motor Co. Inc. (“Liberty Motor”), both located in Oakville (Ontario) and specializing in the conversion of minivans for people with disabilities. The combined acquisition price paid by Savaria for these two companies was approximately $3.6 million in cash plus the issuance of 100,000 common shares.
These two acquisitions enhance Savaria’s presence in the Canadian and US markets for van conversions, which began with the purchase of Quebec-based Van-Action in 2005. The addition of both Viewpoint Mobility and Liberty Motor’s product lines enables Savaria to better meet the varied requirements of wheelchair passengers and drivers by being the only Canadian company to offer personal-use and commercial vehicles; rear-entry, side-entry and dual-entry models; and the ability to provide conversions for a wide range of models offered by major mini-van manufacturers in both the new and used vehicle markets.
“By bringing these two companies under the Savaria umbrella, we are now able to collaborate on our product designs, manufacturing capabilities and customer service in order to offer customers the best in class on all fronts,” stated Marcel Bourassa, President and CEO of Savaria. “We expect this to result in the doubling of the number of vehicle conversions that we currently perform on an annual basis,” added Mr. Bourassa.
“We are excited to benefit from the solid backing of Canada’s largest accessibility company,” stated Tony Colenbrander, President of Viewpoint Mobility. “The financial strength of Savaria will allow us to fund vital engineering and development programs and better serve our customers across Canada and the US,” added Wouter Van Essen, President of Liberty Motor.
Certain information contained in this press release may constitute "forward-looking information" with respect to Savaria, which may include, but is not limited to, statements with respect to the future financial or operating performance of Savaria, costs and timing of future acquisitions, requirements for additional capital and regulatory matters. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Savaria to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties as well as, with respect to the acquisition of Viewpoint Mobility and Liberty Motor, factors specific to the operations and financial condition of those companies.
Although Savaria has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Savaria Corporation (savaria.com) is Canada’s leader and the second largest North American company in the accessibility industry focused on meeting the needs of people with mobility challenges. Savaria designs, manufactures and distributes primarily elevators for residential and commercial use, as well as stairlifts and vertical and inclined platform lifts. Savaria also converts and adapts automotive vehicles for the disabled and also offers scooters and motorized wheelchairs. Its line of products, one of the world’s most comprehensive, enables Savaria to stand out by offering an integrated and customized solution for the mobility needs of the disabled and the elderly. Its operations in China have substantially grown since 2006, and through collaborating with its Canadian facilities have served to increase Savaria’s competitive edge in the marketplace. Savaria records approximately 60% of its sales outside Canada, primarily in the United States. Savaria has a network of some 600 retailers in North America and employs approximately 470 people at its head office in Laval and at its plants in Ville Saint-Laurent (Quebec), Brampton, London and Oakville (Ontario), Calgary (Alberta) and Huizhou (China).