CALGARY, May 1, 2017 /CNW/ - Mosaic Capital
Corporation ("Mosaic") (TSX-V Symbols: M,
M.DB) is pleased to announce that it has successfully
completed the acquisition of a 75% interest in the business being
carried on by Cedar Infrastructure Products, Inc.
("Cedar"). The remaining 25% is being retained by its
founders, Matthew Genovese and
Tony Maio.
Cedar is a distributor of municipal iron castings, concrete
pipe, pre-cast products and related specialty items to service the
road, water and sewer infrastructure and residential construction
industries. Established in 2000 and with headquarters in
Vaughan, Ontario, Cedar serves a
broad group of contractors and municipalities in the Greater Toronto Area and Southwestern Ontario regions.
Mosaic's cost of the acquisition was $18.3 million, subject to typical post-closing
adjustments and was funded through a combination of cash
($14.0 million) and vendor take-back
financing ($4.3 million). The
vendor take back financing is payable in full on year three and
bears interest at commercial rates. Existing management will
remain in place and the transaction includes a three-year earn out
provision to be paid to the vendors if the business meets specified
financial targets.
Co-founders Tony Maio and
Matthew Genovese stated "We are
excited to partner with the Mosaic Capital team. With the
support of Mosaic's management depth and financial backing, we are
in a strong position to grow Cedar's product line, customer base
and geographic footprint in the future."
Mark Gardhouse, CEO of Mosaic
Capital commented "following our acquisition of Bassi in December
of 2016, this acquisition represents Mosaic's second acquisition in
the Ontario market and is
consistent with our long-term strategy to add both industry and
geographic diversification to our portfolio. This transaction
is another example of Mosaic acquiring established and resilient
businesses with strong organic growth opportunities that are
operated by successful owners and management teams."
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.
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.
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 Mosaic of a 75% interest in the
business carried on by Cedar, including the terms of the vendor
take-back financing and the earn-out provisions; the expected
continuity of Cedar's management team; and the expected impact of
Mosaic's management depth and financial backing on the potential
growth of Cedar's product lines, customer base and geographical
footprint. 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
Cedar will continue on a basis at least consistent with prior
years; there will be reasonable continuity of Cedar's management
team; future market conditions for Cedar will not be materially
different than anticipated by Mosaic; and Cedar has substantial
growth potential in the Thornhill
market as well as other regions in Ontario.
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 Cedar has operations;
pricing pressures and other competitive factors; third parties
failing to honour their contractual obligations with Cedar;
procurement and pricing issues with suppliers; unforeseen cost
overruns on Cedar's projects; legislative or regulatory
developments; the continued availability and cost of qualified
labour; the continued strength of the industries within which
customers of Cedar 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 Management's Discussion and Analysis dated April 3, 2017 for the year ended December 31, 2016 and Mosaic's Annual Information
Form dated April 20, 2016 for the
year ended December 31, 2015, a copy
of each 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.
SOURCE Mosaic Capital Corporation