Laval, Quebec, December 14, 2017– Savaria Corporation (TSX: SIS) (“Savaria”), one of North America’s leaders in the accessibility industry, is pleased to announce that it has acquired, through Savaria (Australia) Pty Ltd, its wholly owned subsidiary, all of the assets of Master Lifts Australia Pty Ltd (“Master Lifts”), a leading elevator dealer based in Brisbane, Australia, for a purchase price of AUD $3 million (CDN $3.1 million) (the “Purchase Price”). In addition to the Purchase Price, Master Lifts has the potential to earn a further AUD $1 million (CDN $1 million) over a 2-year period upon the achievement of certain annual performance metrics.
The acquisition of Master Lifts provides Savaria with a national sales platform to gain access to the Australian market. Savaria has secured employment commitments from the key employees of Master Lifts and will continue operating in Australia under the “Master Lifts” trade name. The acquired business is expected to generate revenue of approximately AUD $8 million (CDN $8.2 million) in 2018 and AUD $10 million (CDN $10.2 million) in 2019, with an expected EBITDA margin between 15% and 17%.
“Australia represents an attractive market for Savaria with its favourable demographics, strong economic growth and proximity to our plant in China, which delivers a great context to market our new Vuelift luxury elevator along with our complete portfolio of accessibility products. We believe that this initiative represents a business model that can be successfully duplicated in other countries in the future,” said Marcel Bourassa, Chief Executive Officer and President of Savaria.
“I am excited to start this new chapter in my career where I can apply my industry experience to help grow the Savaria brand in Australia with the help of a great team from Master Lifts,” said Jean-François Viau, Savaria’s newly appointed Managing Director of Savaria (Australia) Pty Ltd. Mr. Viau brings over 25 years’ experience in the mobility industry, most recently with Ricon Corporation and Vapor Bus.
Master Lifts’ owner, Alan Arnold, added: “I am excited by the sale of Master Lifts to Savaria as this will broaden our product portfolio, enhance our sales and technical capability and provide the critical mass to further penetrate the market and allow for growth in market share. I am particularly pleased that the transaction will ensure the continuity of employment for all of our people who have contributed to the success of Master Lifts and who will continue their contribution to the future success of Savaria in Australia.”
Master Lifts has been established since 1996 and is based in Brisbane, Australia with operations in all of the states of Australia. Operations include the manufacture of lifts and the sales, installation and servicing of lifts in the residential, commercial and accessibility markets, with over 12,000 lifts installed across Australia. Master Lifts has enjoyed a mutually beneficial seven-year trading relationship with Savaria.
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 patient lifts. Following its recent acquisition, 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. Factoring in its most recent acquisition, Savaria will record around 70% 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) 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 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 and Savaria does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable 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