CALGARY, July 6, 2017 /CNW/ - Circa Enterprises Inc.
(TSVX-CTO) ("Circa"), a manufacturer of equipment for the
telecommunication, electrical utility, and construction industries,
announced today that it has entered into a definitive agreement to
acquire substantially all of the assets of Guardian Telecom Inc.
("Guardian"), a global designer, manufacturer and supplier of
hazardous and ruggedized high performance telecommunications
equipment. The agreement was signed July 6, 2017 and the transaction is expected to
be completed on or about July 14, 2017. Upon completion of the
acquisition, the business will operate as Guardian Telecom, a
division of Circa Enterprises Inc.
"The acquisition of Guardian Telecom expands Circa's Telecom
business segment with comprehensive communications systems
engineered for extreme operating conditions. Guardian's line of
ruggedized telecommunications equipment fits well with our existing
manufacturing, procurement and engineering capabilities and
significantly broadens our customer base," said Grant Reeves, President and CEO of Circa.
Mr. Reeves added, "The Guardian business has an excellent
reputation for providing complete systems for industrial,
transportation and institutional customers worldwide."
The cash transaction of approximately $3.5 million remains subject to standard closing
conditions. Funding for the transaction is expected to be
financed from existing cash and the restructuring of the Company's
credit facility. The Guardian business is expected to be cash flow
generative beginning in the third quarter of 2017 and the
operations will be integrated with Circa's facilities in
Calgary, Alberta.
About Circa Enterprises
Circa Enterprises Inc. is a
public company headquartered in Calgary,
Alberta with operations in Alberta, Ontario and Florida. Circa manufactures
and sells telecommunications equipment, cable and connectivity
products, metal enclosures, electrical equipment, and other goods
to customers in the telecommunications, electrical, and
construction industries. The outstanding common shares of
Circa are listed and trade on the TSX Venture Exchange under the
trading symbol CTO. Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
About Guardian Telecom
Guardian Telecom has been
operating since 1985 and is based in Calgary, Alberta. Guardian manufactures and
customizes fully integrated ruggedized high performance
telecommunications equipment for nonhazardous, hazardous, Class I
Division 1, Class I Division 2 and other hardened equipment
applications needed around the globe. Guardian's tough and
rugged phones, systems, enclosures and IP telecommunications
equipment are certified specifically for the industrial and
commercial markets.
Forward Looking Statements
Certain
information in this News Release may constitute "forward-looking"
information that involves known and unknown risks, uncertainties,
future expectations and other factors which may cause the actual
results, performance or achievements of the Company or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking information. When used in this News Release, this
information may include words such as "anticipate", "estimate",
"may", "will", "expect", "believe", "plan" and other terminology
and specifically includes reference to the completion and timing of
the referenced acquisition, the impact of such acquisition on the
earnings of Circa and the timing for the business of Guardian to be
cash flow generative. These statements are neither promises
nor guarantees, but involve known and unknown risks and
uncertainties and are based on both the views of management and
assumptions (such as those relating to the performance of the
Guardian business and management's ability to integrate such
business) that may cause our actual results, levels of activity,
performance or achievements to be materially different from any
future results, levels of activities, performance or achievements
expressed in or implied by these forward looking statements.
This information reflects current expectations regarding future
events and operating performance and speaks only as of the date of
this News Release. Except as required by law, we assume no
obligation to update or revise forward-looking information to
reflect new events or circumstances. Additional information is
available in the Company's Management Discussion and Analysis,
which can be found on SEDAR at www.sedar.com.
SOURCE Circa Enterprises Inc.