Laval, Quebec,April 16, 2018 – Savaria Corporation (“Savaria” or the “Corporation”) (TSX: SIS), one of North America’s leaders in the accessibility industry, is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. and GMP Securities L.P. (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 3,000,000 common shares (the “Shares”) of the Corporation at a purchase price of $16.60 per Share (the “Offering Price”), for gross proceeds to the Corporation of $49,800,000 (the “Offering”). The Underwriters have also been granted an option, exercisable in whole or in part at any time up to 30 days following the closing date, to purchase for resale up to an additional 450,000 Shares at the Offering Price, which would result in additional gross proceeds of $7,470,000.
The Shares will be offered in all provinces of Canada pursuant to a short form prospectus to be filed by Savaria as well as in the United States under applicable registration statement exemptions.
The net proceeds of the Offering will be used to reduce indebtedness under the Corporation’s existing revolving credit facility, to provide further financial flexibility to fund growth initiatives and for general corporate and working capital purposes.
Mr. Marcel Bourassa, President and Chief Executive Officer of Savaria, and Mr. Jean-Marie Bourassa, Chief Financial Officer of Savaria, have committed to participate in the Offering by purchasing, through a holding company owned by them in equal proportions, $1 million worth of Shares, being 2.0% of the Shares to be issued pursuant to the Offering.
The Offering is scheduled to close on or about May 4, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX and any applicable securities regulatory authorities.
2018 Outlook and First Quarter Update
Savaria’s first quarter results, to be announced on May 10, 2018, remain in line with management's expectations and Q1 budget, representing approximately 20% of full year budget as a result of usual seasonality. Savaria is also reaffirming its full fiscal year 2018 outlook, as released on March 8, 2018, with respect to revenue of approximately C$268 million and adjusted EBITDA in the range of $42.5 - $44.5 million, excluding any new acquisitions.
Non International Financial Reporting Standards (“IFRS”) Measures
EBITDA and adjusted EBITDA are non IFRS measures. These measures have no standardized definitions in accordance with IFRS. These measures may therefore not be comparable to similar measures reported by other companies. EBITDA and adjusted EBITDA are defined by the Company as follows: EBITDA means earnings before interest, income taxes, depreciation and amortization while adjusted EBITDA means EBITDA as defined above before realized and unrealized business acquisition costs, the value adjustment on acquired inventories and the compensation expense on share options granted.
This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The Shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.
Savaria Corporation (savaria.com) is one of North America’s leaders in the accessibility industry. It provides accessibility solutions for the physically challenged to increase their comfort, their mobility and their independence. Its product line is one of the most comprehensive on the market. Savaria designs, manufactures, distributes and installs accessibility equipment, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts, elevators for home and commercial use, as well as ceiling lifts. Following its acquisition closed in June 2017, Savaria also manufactures and markets a comprehensive selection of pressure management products for the medical market, medical beds for the long-term care market, mattress overlays and foam pillows for the retail market and certain products for the industrial market, primarily foam products. In addition, Savaria converts and adapts vehicles to be wheelchair accessible. It also operates a network of franchisees and corporate stores through which new and recycled accessibility equipment is sold. Savaria records around 66% of its revenue outside Canada, primarily in the United States. It operates a sales network of some 400 retailers in North America and employs some 800 people. Its plants are located in Laval and Magog (Quebec), Brampton, Beamsville and Toronto (Ontario), Greenville (South Carolina), Huizhou (China) and Brisbane (Australia).
Cautionary Notice Regarding Forward-Looking Statements
Certain information in this press release may constitute “forward-looking statements” regarding Savaria, including, without being limited thereto, understanding of the elements that might affect the Corporation’s future, relating to its financial or operating performance, the costs and schedule of future acquisitions, supplementary capital expenditure requirements, legislative matters, the expected use of the net proceeds of the Offering, and the timing of conditions to closing of the Offering. Most frequently, but not invariably, forward-looking statements are identified by the use of such terms as “plan”, “expect”, “should”, “could”, “budget”, “expected”, “estimated”, “forecast”, “intend”, “anticipate”, “believe”, variants thereof (including negative variants) or statements that certain events, results or shares “could”, “should” or “will” occur or be achieved. Such statements involve known and unknown risks, uncertainties and other factors liable to cause Savaria’s actual results, performance or achievements to differ materially from those set forth in or underlying the forward-looking statements. Such factors notably include general, economic, competitive, political and social uncertainties. Although Savaria has attempted to identify the key elements liable to cause actual measures, events or results to differ from those described in the forward-looking statements, other factors could have an impact on the reality and produce unexpected results. The forward-looking statements contained herein are valid at the date of this press release. Savaria undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change, except as required by law. As there can be no assurance that these forward-looking statements will prove accurate, actual future results and events could differ materially from those anticipated therein. Accordingly, readers are strongly advised not to unduly rely on these forward-looking statements.
For further information:
Hélène Bernier, CPA, CA