Laval, Quebec, February 1, 2017– Savaria Corporation (TSX: SIS) (“Savaria”), one of North America’s leaders in the accessibility industry, today announced that it has entered into an agreement to acquire all of the assets of Premier Lifts, Inc. (“Premier Lifts”), a leading elevator dealer in the Baltimore – Washington area, for a purchase price of approximately US $3.5 million (CDN $4.6 million). Premier Lifts has been a strong dealer installer for Savaria for 15 years and is expected to deliver net sales of approximately US $4 million (CDN $5.2 million) and earnings before interest, income taxes, depreciation and amortization (EBITDA) of approximately US $500,000 (CDN $655,000) annually. The transaction is expected to close in February 2017, subject to certain conditions, including the completion of Savaria’s due diligence review and the obtaining of all necessary third party consents and permits.
“Although Savaria does not typically acquire dealers, the contemplated retirement of Premier Lifts’ owner, Tim Blair, has presented us with an opportunity to continue our strong sales and service presence in the marketplace. Our two organizations have enjoyed a great business partnership over the years which we look forward to leveraging for the future, with Mr. Blair agreeing to remain involved in a consultative role to assist with a smooth transition for Savaria and the staff at Premier Lifts,” said Marcel Bourassa, Chief Executive Officer and President of Savaria.
“I am very pleased to move ahead with this transaction that will continue the legacy of all of our employees’ hard work to install and service products at the highest standards. I am confident in my management team who will continue to grow and build all areas of the business,” said Tim Blair.
Premier Lifts sells, installs and services a full range of elevator and lift products within Maryland, Washington, D.C. and Virginia from its offices located in Timonium, a suburb of Baltimore, Maryland. The company has been very active with major home builders in the area in offering new homes that feature a Savaria elevator. The company also successfully installs and services Savaria commercial accessibility lifts throughout the region.
Savaria Corporation (savaria.com) is one of North America’s leaders in the accessibility industry. It provides accessibility solutions for the elderly and physically challenged to increase their mobility and independence. The diversity of 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, as well as elevators for home and commercial use. In addition, it 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 and, in certain locations, vehicle conversions are performed. Savaria operates a plant located in Huizhou (China) which increases its competitive edge. Savaria records close to 60% of its revenue outside Canada, primarily in the United States. It operates a sales network of some 400 retailers and affiliates in North America and employs some 500 people. Its principal places of business are located in Laval (Quebec), Brampton (Ontario) and Huizhou (China).
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 Savaria’s future, relating to its financial or operating performance, the completion of the acquisition of Premier Lifts and the terms thereof, the costs and schedule of future acquisitions, supplementary capital expenditure requirements and legislative matters. 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. 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