CALGARY, Jan. 10, 2017 /CNW/ - Mosaic Capital
Corporation ("Mosaic") (TSX-V Symbols: M,
M.PR.A and M.DB) is pleased to announce that Secon
Holdings LP ("Secon"), a 75% subsidiary of Mosaic, has
successfully completed the acquisition of a 70% interest in the
business being carried on by Tundra Mechanical and Millwrighting
Ltd. ("Tundra"). Established in 1988, Tundra provides
mechanical and millwrighting services to a broad range of
industries, including water treatment, waste management and
agriculture. Representative customer segments have included feed
mills, process mills and seed cleaning and storage companies. While
Tundra performs complimentary and similar services to Secon, this
acquisition will allow Secon to access a different segment of the
growing Saskatchewan market. The
acquisition was funded through a combination of cash and a vendor
note and was at the low end of Mosaic's usual valuation range.
Established in 1989 in Saskatchewan, Secon is a multi-trade
industrial and commercial construction company, primarily servicing
the potash mining and milling industry in all phases of underground
and surface construction and maintenance. Secon has also worked on
construction and infrastructure projects related to power
generation, coal mining and crushing, fertilizer production and
oilseed crushing.
Harold Kunik, President of
Mosaic, commented "We are excited about the partnership between
Secon and Tundra. With access to Secon's strong marketing team and
customer base, we are certain Tundra will continue to grow in the
western Canada market."
ABOUT MOSAIC CAPITAL CORPORATION
Mosaic is a Canadian investment company that owns a portfolio of
established businesses which span a diverse range of industries and
geographies. Mosaic's strategy is to create long-term value for its
shareholders through accretive acquisitions, long-term portfolio
ownership, sustained cash flows and organic portfolio growth.
Mosaic achieves its objectives by maintaining financial discipline,
acquiring businesses at attractive valuations, performing extensive
acquisition due diligence, utilizing optimal transaction
structuring and working closely with subsidiary businesses after
acquisition.
FORWARD-LOOKING INFORMATION:
This news release may contain forward-looking information and
statements within the meaning of applicable Canadian securities
laws (herein referred to as "forward-looking statements") that
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. All information and statements in this news release
which are not statements of historical fact may be forward-looking
statements. The words "believe", "expect", "intend", "estimate",
"anticipate", "project", "scheduled", and similar expressions, as
well as future or conditional verbs such as "will", "should",
"would", and "could" often identify forward-looking statements. In
particular, forward-looking statements in this news release
include, but are not limited to: statements with respect to the
terms of the acquisition by Secon of a 70% interest in the business
carried on by Tundra and management's belief that Secon has
substantial growth potential in the western Canada market. Such statements or information
are only predictions and reflect the current beliefs of management
with respect to future events and are based on information
currently available to management. Actual results and events may
differ materially from those contemplated by these forward-looking
statements due to these statements being subject to a number of
risks and uncertainties.
Undue reliance should not be placed on these forward-looking
statements as there can be no assurance that the plans, intentions
or expectations upon which they are based will occur. By their
nature forward-looking statements involve assumptions and known and
unknown risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions and other
forward-looking statements will not occur. Some of the assumptions
made by Mosaic, upon which such forward-looking statements are
based include, but are not limited to: the business operations of
Tundra will continue on a basis at least consistent with prior
years and future market conditions for Tundra will not be
materially different than anticipated by Mosaic.
A number of factors could cause actual results to differ
materially from those expressed or implied by the forward-looking
statements, including, but not limited to: general business and
economic conditions in geographic areas where Tundra has
operations; pricing pressures and other competitive factors; third
parties failing to honour their contractual obligations with
Tundra; procurement and pricing issues with suppliers; unforeseen
cost overruns on Tundra's projects; legislative or regulatory
developments; the continued availability and cost of qualified
labour; the continued strength of the industries within which
customers of Tundra operate; and the continued ability to secure
new business. Should any of the risks or uncertainties facing
Mosaic and its subsidiaries materialize, or should assumptions
underlying the forward-looking statements prove incorrect, actual
results, performance, activities or achievements could vary
materially from those expressed or implied by any forward-looking
statements contained in this news release. Readers are cautioned
that the foregoing list of risks is not exhaustive. Additional
information on these and other factors that could affect the
operations or financial results of Mosaic and its subsidiaries are
included in Mosaic's annual information form for the year ended
December 31, 2015, a copy of which is
available under Mosaic's profile on SEDAR (www.sedar.com).
Although Mosaic believes that the expectations represented by
any forward-looking statements contained herein are reasonable
based on the information available to it on the date of this news
release, management cannot assure investors that actual results,
performance or achievements will be consistent with these
forward-looking statements. Any forward-looking statements herein
contained are made as of the date of this news release and Mosaic
does not assume any obligation to update or revise them to reflect
new information, events or circumstances, except as required by
law.
Neither the 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.
SOURCE MOSAIC CAPITAL CORPORATION