SAN ANTONIO--(BUSINESS WIRE)--XPEL Technologies Corp. (TSXV:DAP.U), a global supplier of automotive paint and headlamp protection films, today announced that it has acquired Parasol Canada, a distributor of paint protection and window tint products for the Canadian market.
Parasol, founded in 2009, is headquartered in Terrebonne, a suburb of Montreal, with a distribution office in Calgary. Parasol has hundreds of independent installers and automobile dealerships as customers who are serviced by sales representatives in key markets throughout Canada. In addition to supplying customers with paint protection film, automotive window tint and installation tools, Parasol also provides extensive installation training.
Mr. Ryan Pape, President and Chief Executive Officer of XPEL, said, “This acquisition is in line with our strategy to get closer to our end customers, particularly in key international markets. Parasol Canada is a profitable business with a successful management team who will remain with the company. The acquisition allows us to gain a dedicated Canadian sales force, add to our portfolio of products, gain margin and expand our proven U.S. marketing initiatives into Canada, where we believe there is significant opportunity for growth as we integrate under the XPEL brand. Furthermore, Parasol Canada brings with it a five-year agreement and five-year renewal option to exclusively supply paint protection film and window tint to the 79 locations that comprise the Protex Paint Protection and Pelti Window Film franchise groups.”
A majority of Parasol Canada’s revenue is derived from the sale of XPEL products.
The acquisition price of CAD$4.8 million was funded by US$1.9M in new borrowing from the Company’s primary lender, The Bank of San Antonio and a five-year, interest-free seller’s note. XPEL acquired inventory and receivables of approximately CAD$1.5 million as part of the purchase price.
The acquisition of Parasol Canada was completed by the transfer of all of Parasol Canada’s assets to a new subsidiary and the acquisition of all of the shares of the new subsidiary by XPEL Canada Corp., XPEL’s wholly owned Canadian subsidiary.
Mr. Pape continued, “We are focused on expanding our geographical reach and increasing our customer base to drive revenue growth. Canada is our largest international market, and this acquisition enhances our presence there as we look to continue to grow market share.”
About XPEL Technologies Corp.
XPEL is the leading supplier of automotive paint and headlamp protection films with over 70,000 vehicle-specific applications and a worldwide network of trained installers. XPEL is the developer of the Design Access Program software, and manufacturer of XPEL™ Automotive Paint and Headlamp Protection Products. XPEL has forged the cutting-edge of automotive protection technology, and leads the industry in quality, technical support and customer service.
Additional information can be found on the Company's website at www.xpel.com
Safe harbor statement
This release includes forward-looking statements regarding XPEL Technologies Corp. and its business, which may include, but is not limited to, anticipated use of proceeds from capital transactions, expansion into new markets, and execution of the company's growth strategy. Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "is expected," "expects," "scheduled," "intends," "contemplates," "anticipates," "believes," "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of XPEL. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, performance and acceptance of the company's products, economic factors, competition, the equity markets generally and many other factors beyond the control of XPEL. Although XPEL has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and XPEL undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither 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.