TORONTO, April 5, 2016 /CNW/ - Exco Technologies
Limited (TSX-XTC) announced that it has completed the
acquisition of AFX Industries L.L.C. ('AFX') for consideration of
US$73 million, excluding $4 million of assumed debt. The transaction was
previously announced in a press release dated February 16, 2016. AFX had revenue of
approximately C$115 million
(equivalent) in 2015. Exco expects the acquisition will be highly
accretive to its earnings per share.
"AFX's high quality operations are extremely complementary to
our automotive interior trim business", said Brian Robbins, President and CEO of Exco. "AFX
also provides us with new capabilities and customer/ supplier
relationships that undoubtedly strengthen our opportunity for
further growth", added Robbins.
AFX was founded in 1998 and is based in Port Huron, Michigan with manufacturing
operations in Matamoros, Mexico.
The company is a leading tier 2 supplier of leather and
leather-like interior trim components to the North American
automotive market. AFX supplies die cut leather sets for seating
and most other interior trim applications as well as
injection-molded, hand-sewn, machine-sewn and hand-wrapped interior
components of all types. These components include steering wheels,
automatic shift knobs, shift boots, park brake handles, armrests,
console lids and instrument panels. Exco will report the results of
AFX within its Automotive Solutions Group beginning in its third
fiscal quarter ending June 30,
2016.
A conference call to discuss the transaction will be held on
Thursday April 7, 2016 at
8:30 am (Toronto time) and can be accessed by dialing
(647) 427-7450 for local (Toronto)
calls or toll free 1-888-231-8191. To access the live audio
webcast, please log on to www.excocorp.com, or
http://event.on24.com/r.htm?e=1168595&s=1&k=0DBDE1FF14C63F1BD4B9DAC5FCA28CCF a
few minutes before the event.
Exco Technologies Limited is a global supplier of innovative
technologies servicing the die-cast, extrusion and automotive
industries. Through our 20 strategic locations in 10
countries, we employ 6,697 people and service a diverse and broad
customer base.
Information in this news release relating to the expectation
for earnings per share accretion are forward-looking statements.
Readers are cautioned not to place undue reliance on
forward-looking statements in this news release. These
forward-looking statements are based on our plans, intentions or
expectations which are based on, among other things,
assumptions about the number of automobiles produced in
North America, the rate of
economic growth in North America,
raw material prices, continuing economic recovery, currency
fluctuations which may in fact not occur, the level of interest
rates, the success of integration plans and depreciation
rates.
While Exco believes that the expectations expressed by such
forward-looking statements are reasonable, we cannot assure that
they will be correct. In evaluating forward-looking
information and statements, readers should carefully consider the
various factors which could cause actual results or events to
differ materially from those indicated in the forward-looking
information and statements. Readers are cautioned that the
foregoing list of important factors is not exhaustive.
SOURCE Exco Technologies Limited