Western finalizes purchase of Foothills Creamery Ltd.
26 Febrero 2018 - 8:30AM
The Western Investment Company of Canada Limited ("Western")
(TSX-V:WI) together with co-investor ATB Capital have executed a
purchase and sale agreement for the purchase of a 90% ownership
stake in Foothills Creamery Ltd.
Foothills Creamery – “Striving to be the butter on your
toast and the ice cream in your cone”Established in 1969,
Foothills is one of Western Canada’s premier producers of dairy
products including butter and premium ice cream. The Company’s
modern production facility and head office are located in Calgary,
with distribution centres in Edmonton and Kelowna,
BC. Foothills 60 employees produce and distribute more than
4.4 million kilograms of butter and 1.1 million kilograms of
ice cream annually to sales outlets across Canada. Foothills
products are featured in major grocery stores as well as
smaller specialty shops. The Company also has extensive co-packing
and private label agreements with producers and
retailers. For more information on Foothills go to:
www.foothillscreamery.com
Western CEO Scott Tannas stated, “Foothills Creamery is exactly
the kind of company in which we seek to make investments. Foothills
has a strong brand, loyal customers, and remarkable growth in
revenue and profit. Don Bayrack is an icon in the dairy industry
having built the Company steadily over the decades. The production
facility is modern, with capacity to support future growth. Don
will continue to provide leadership and inspiration to a loyal and
capable management team. We are especially pleased to be part of
the future success of Foothills. After all, who wouldn’t be happy
to be in the ice cream business?”
Foothills founder Don Bayrack said, “After five decades of
building Foothills, I’m glad I found partners for the future.
Western’s and ATB’s local roots and reputation were important
considerations. I’m excited to continue to play a role in
positioning Foothills for a very successful future.”
Transaction DetailsThis transaction is the
completion of the previously announced (November 16, 2017 “Agrifood
Processor”) Letter of Intent. The closing of the acquisition is
scheduled to occur on February 28, 2018. Western intends to issue a
press release once the transaction closes.
The purchase price is set at $27.6 million, subject to
adjustments. Western will own 50 percent of Foothills with
ATB Capital and Foothills founder and CEO Don Bayrack retaining the
other 50 percent. The purchase price for the acquisition will be
settled by way of a combination of cash, debt financing, and a
performance based earn out, along with the issuance of 400,000
common shares in the capital of Western, with a deemed price of
$0.625 per share. Of the aggregate purchase price, Western
shall pay an aggregate of $3,075,000 in cash. The debt
financing shall be a combination of real estate debt, an
acquisition term loan and an operating facility, all to be provided
by the BMO Bank of Montreal. Western and ATB Capital expect
the debt financing to be fully serviced through cash flow from the
operations of Foothills. The completion of the transaction is
subject to the final approval of the TSX Venture Exchange.
About WesternWestern is a
unique publicly traded, private equity company founded by a group
of successful Western Canadian businesspeople, and dedicated to
building and maintaining ownership in successful Western
Canadian companies, and helping them to grow. The company’s
shares are traded on the TSX Venture Exchange under the symbol WI.
For more information on the company, please visit its website at
www.winv.ca
About ATB CapitalATB Capital,
a division of ATB Financial, is a $100M private equity fund with
the mandate to partner with Alberta companies providing access to
capital, market expertise, business connections and operational
excellence.
CONTACT INFORMATIONThe Western
Investment Company of Canada LimitedScott TannasPresident and Chief
Executive Officer(403) 652-2663stannas@winv.ca
AdvisoryThis news release may
contain certain forward-looking information and statements,
including without limitation, statements pertaining to future
plans, acquisitions, financings and returns. Statements containing
the words: 'believes', 'intends', 'expects', 'plans', 'seeks'
and 'anticipates' and any other words of similar meaning
are forward-looking. All statements included herein involve
various risks and uncertainties because they relate to future
events and circumstances beyond Western's control. There can be no
assurance that such information will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such information. A description of assumptions
used to develop such forward-looking information and
a description of risk factors that may cause actual results to
differ materially from forward-looking information can be
found in Western's disclosure documents on the SEDAR website at
www.sedar.com. Any forward-looking statements are made as of
the date of this news release and Western does not undertake to
update any forward-looking information except in accordance
with applicable securities laws.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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