Sep 2 2014
Stuart Olson Inc. ("Stuart Olson" or the "Company") announced today that it has completed the sale of Broda Construction Inc. ("Broda") to TriWest Capital Partners and senior management of Broda for gross cash proceeds of $39 million. Broda is a heavy construction company specializing in aggregate processing, earthwork, civil construction, and concrete production. Stuart Olson acquired Broda in 2010.
Mr. David LeMay, President and Chief Executive Officer of Stuart Olson said, "The divestiture of Broda is the result of a strategic review undertaken to assess our assets and their utilization in the context of our broader business strategy going forward. The proceeds from the sale of Broda will allow us to strengthen our balance sheet and increase our financial flexibility to fund growth initiatives more closely aligned with our strategy of becoming a fully integrated construction company."
Net proceeds of the sale will initially be used to repay outstanding indebtedness under the Company's revolving credit facility. The transaction closed on September 1, 2014 and is subject to normal and customary post-closing balance sheet adjustments.
TD Securities Inc. acted as exclusive financial advisor to Stuart Olson in connection with this transaction.
Stuart Olson expects its third quarter 2014 financial results to include a non-cash investment loss related to the sale of Broda of between $19 and $21 million. This loss will be reflected in discontinued operations. The exclusion of Broda's operating results on a go forward basis is not expected to have a material impact on future reported consolidated net earnings or earnings per share for Stuart Olson.
About Stuart Olson
Stuart Olson provides building construction, commercial and industrial electrical contracting, and industrial insulation services to an array of public and private sector clients. The Company operates office locations throughout British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. Stuart Olson common shares and convertible debentures are listed on the Toronto Stock Exchange under the symbols "SOX" and "SOX.DB", respectively. www.stuartolson.com
Source: http://www.stuartolson.com/