WINNIPEG, Manitoba--(BUSINESS WIRE)--Exchange Income Corporation (TSX: EIF) (“EIC” or the “Corporation”) a diversified, acquisition-oriented company focused on opportunities in the Aerospace & Aviation and Manufacturing segments, announced today it has acquired Armand Duhamel & Fils Inc. (“Duhamel”), a privately owned Quebec-based company, for $19 million, which can increase up to $22 million if certain post-closing targets are achieved. The purchase price was funded by the issuance of $3 million of EIC common shares to the vendors and cash in the amount of $16 million from the Corporation’s credit facility.
Duhamel, founded in 1965 in St-Ignace-de-Stanbridge, Quebec, owns and operates a sawmill operation that manufactures products for customers in Quebec, Ontario, and Atlantic Canada. Duhamel primarily focuses on the manufacturing and sale of eastern hemlock products, for which they are a leader in the Quebec market. The company operates on approximately 40 acres of owned land that includes its lumber yard and sawmill. Duhamel will play an important role in partnership with Northern Mat and Bridge LP (“Northern Mat”) to further grow our Environmental Access Solutions business line in the Quebec market and Eastern Canada.
“The acquisition of Duhamel represents an exciting strategic opportunity for Northern Mat to bolster its presence in the Quebec market. The Northern Mat team has made considerable advances in bringing its services and the acceptance of access mats as a best practice to Ontario. The next major market is Quebec, where we expect there to be significant capital project spend over the next decade,” said Mike Pyle, CEO of EIC.
Guillaume Gonthier, co-owner of Duhamel is continuing as the President of the company. In discussing the decision to sell to EIC, Mr. Gonthier stated, “Over the last couple of years, we have had the opportunity to work closely with the Northern Mat team and have experienced the professionalism and hard work that is put into their strategy. We are confident that joining Northern Mat and EIC was the right choice for our stakeholders, including our employees and customers, and we look forward to playing an important role in their Quebec strategy.”
“We are very excited to announce the acquisition of Duhamel and welcome Guillaume and his team into the EIC family,” stated Shane Stewart, Northern Mat’s President & COO. “Duhamel’s first-class reputation and management are key to Northern Mat’s Quebec strategy going forward. The Quebec market will be robust over the decade to come, and having a strong local presence will allow us to offer a comprehensive offering to our clients, ensuring that we are the premier provider of access solutions in the province.”
“This acquisition adds a successful manufacturer to our Environmental Access Solutions business line and hits all EIC’s acquisition requirements, including being immediately accretive to our shareholders on a per share basis,” said Adam Terwin, Chief Corporate Development Officer of EIC. “Within this business line we see strong demand to support infrastructure projects and their ongoing maintenance tied to the demand for electricity and energy transition. Quebec will be an important market driven by its current hydroelectric capabilities and its planned investments. To serve the market and its customers, we need a deep local presence in the community which is provided by Duhamel and supported by their long history of successful operations in the province. EIC continues to look for additional opportunities to support the growth of our Environmental Access Solutions business line based on the market outlook for anticipated strong demand.”
About Exchange Income Corporation
Exchange Income Corporation is a diversified acquisition-oriented company, focused in two sectors: aerospace & aviation and manufacturing. The Corporation uses a disciplined acquisition strategy to identify already profitable, well-established companies that have strong management teams, generate steady cash flow, operate in niche markets and have opportunities for organic growth. For more information on the Corporation, please visit www.ExchangeIncomeCorp.ca. Additional information relating to the Corporation, including all public filings, is available on SEDAR+ (www.sedarplus.ca).
About Northern Mat and Bridge LP
Northern Mat and Bridge LP is Canada’s premier provider of safe, cost-effective, and environmentally responsible temporary access solutions for the power transmission and distribution; pipeline; oil and gas; emergency response; renewable energy; forestry; mining and general construction industries. Northern Mat is the largest supplier of access mats and temporary bridges in Canada, with operations from across Canada. Managing every aspect of a client’s access requirements, Northern Mat’s product and service line-up includes access mats, rig mats, crane mats, temporary bridges, planning and consultation, delivery, installation, maintenance, relocation, removal, reclamation, cleaning, and disposal.
About Armand Duhamel & Fils Inc.
Armand Duhamel & Fils Inc. was founded in 1965 in St-Ignace-de-Stanbridge, Quebec, approximately an hour outside of Montreal. The company owns and operates a sawmill operation that primarily manufactures eastern hemlock products for customers in Eastern Canada, with the majority of its sales in Quebec. Duhamel operates on approximately 40 acres of owned land that includes its lumber yard and its sawmill operations.
Caution concerning forward-looking statements
The statements contained in this news release that are forward-looking are based on current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. These uncertainties and risks include, but are not limited to, external risks, operational risks, financial risks and human capital risks. External risks include, but are not limited to, risks associated with economic and geopolitical conditions, competition, availability of government funding for Indigenous health care, access to capital, market trends and innovation, risks associated with uninsured losses, climate risks, acts of terrorism, armed conflict, labour or social unrest, risks of a pandemic, the level and timing of defence spending, government-funded defence and security program risks and risks associated with environmental, social and governance. Operational risks include, but are not limited to, significant contracts and customers, operational performance and growth, laws, regulations and standards, acquisitions, concentration and diversification, access to parts and relationships with key suppliers, casualty losses, environmental liability, dependence on information systems and technology, international operations, fluctuations in sales prices and purchase prices of aviation related assets, warranties and performance guarantees, global offset and intellectual property risks. Financial risks include, but are not limited to, availability of future financing, income tax matters, commodity risk, risks related to foreign exchange, interest rates, credit facility and the trust indentures, dividends, unpredictability and volatility of securities pricing, dilution and other credit risk. Human capital risks include, but are not limited to, reliance on key personnel, risks related to employees and labour relations and conflicts of interest.
Except as required by Canadian Securities Law, Exchange Income Corporation does not undertake to update any forward-looking statements; such statements speak only as of the date made. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by Exchange Income Corporation with the securities regulatory authorities, available at www.sedarplus.ca.
