Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) today announces that it has signed a share purchase agreement to acquire Vega Industries Limited (“Vega”).
Vega was established in 1972, and is a leading competitor in the worldwide marine aids to navigation market. Vega was the first company to design and manufacture a port entry light and has many complementary products to the current Sabik and Carmanah marine product offerings. Vega’s operations are headquartered in Porirua, New Zealand.
“The Vega acquisition will strengthen our worldwide product portfolio and allow us to provide more comprehensive single-source solutions for our marine customers.” said John Simmons, Carmanah CEO. “The acquisition of Vega has been on our roadmap for many years, and continues our growth strategy in the Signals market.”
The purchase price is NZD $12 million (USD $9 million) subject to certain adjustments and escrow holdbacks.
Subject to the satisfaction of remaining customary conditions, the transaction is expected to close by August 1, 2017.
About Carmanah Technologies Corporation
Carmanah designs, develops, and distributes a portfolio of products focused on energy-optimized LED solutions for infrastructure. Since 1996, we have earned a global reputation for delivering durable, dependable, efficient, and cost-effective solutions for industrial applications that perform in some of the world’s harshest environments. We manage our business within two reportable segments: Signals and Illumination. The Signals segment serves the Airfield Ground Lighting, Aviation Obstruction, Offshore Wind, Marine, and Traffic markets. The Illumination segment provides solar-powered LED outdoor lights for municipal and commercial customers.
Carmanah Technologies Corporation:
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This release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “expects,” “estimates,” “could,” “will” or variations of such words and phrases. Forward-looking statements or information in this news release relate to, among other things: revenues, and revenue growth, for the fourth quarter and year ended December 31, 2015; order backlogs; gross margins; and estimates of EBITDA and Adjusted EBITDA. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Carmanah or Sabik to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to: our ability to become a worldwide leader in the marine aids to navigation industry, the potential growth of the offshore wind safety market or our ability to participate in any growth, and other general uncertainties that may impact actual outcomes. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions, and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. Carmanah disclaims any obligation to update, or to publicly announce, any such statements, events, or developments except as required by law.
For additional information on these risks and uncertainties, see Carmanah’s most recently filed Annual Information Form (AIF) and Annual MD&A, which are available on SEDAR at www.sedar.com and on the Company’s website at www.carmanah.com. The risk factors identified in Carmanah’s AIF and MD&A are not intended to represent a complete list of factors that could affect Carmanah.