Multi-Glass Announces Sale of Contracting Division in Atlantic Canada

Multi-Glass International Corp. ("Multi-Glass") of Toronto announces that it has entered into an asset purchase agreement with three companies based in Atlantic Canada (an arm's length transaction), pursuant to which Multi-Glass agreed to sell the contracting operations of Guildfords (2000) Inc. ("Guildfords") which includes the contracting assets of Guildfords, Guild Contracting Specialties (2000) Inc. and Dover Insulation Contractors (2000) Inc., (the "Transaction").In announcing the transaction Bob Fellows, President and Chief Executive Officer of Multi-Glass said, "As one of Canada's largest insulation distributors, this sale is consistent with our strategy to get back to our core business in Atlantic Canada.

This initiative is part of our company-wide objective of improving our level of service to our customers and providing continuous enhancements to our ordering and distribution processes."

The sale consists of primarily receivables and work-in-progress, less the liabilities associated with those assets. The sale proceeds of approximately $3.6 million will be paid in cash of $2.6 million and a $1.0 million promissory note, which will be secured with a second charge on the assets of the entity purchasing the assets. The promissory note will bear interest at 5% and will require monthly payments for five years. There will be a contingency holdback of approximately $100,000, which will be paid to Guildfords, 120 days after the closing of the transaction. The cash proceeds will be used to reduce Multi-Glass' operating loan from its principal lender.

The closing of the Transaction is anticipated to occur on September 30, 2005 and is conditional upon approval from the TSX-Venture Exchange, and the completion of a due diligence process. (No agent or finder's fees will be paid as part of this transaction.)

600450 Multi-Glass Announces Sale of Contracting Division in Atlantic Canada glassonweb.com

See more news about:

Others also read

Emirates Glass, a Dubai Investment subsidiary, has won a major contract to supply 140,000 square meters of its premium glass to the prestigious development on the Palm Jumeirah, reaffirming its already established reputation as the single most prominent company in the entire regional glass industry.The deal was announced during the company's participation in the prestigious Big 5 show, the largest annual venue for the entire Middle-East glass contracting industry.
Isra Vision Systems AG supplier of machine vision systems, has successfully improved its market position in display glass inspection with a major order totalling 1.8 Mio Euro.
Packagers such as the UK's Rexam and private equity firms are set to vie for pump-sprayer business Calmar, which France's Saint-Gobain (SGOB.
The National Lime & Stone Co. will discontinue production of calcined lime early next month at its Carey plant, the company CEO announced Thursday.
Jain Scientific Glass Works, manufacturers of glassware for laboratories, is importing glass as raw material from China, which was much cheaper than the local product and abundantly available.
The following stocks are moving in Japanese markets today. Prices are as of 12:55 p.m. at the Tokyo Stock Exchange. Stock symbols are in parentheses after company names.

Add new comment