TORONTO, Dec. 20, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC, OTCQX-EXCOF) a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries, today announced it has signed a definitive agreement to acquire the extrusion dies business of Halex Holdings GmbH (“Halex® Extrusion Dies”). The transaction is expected to close in the spring of 2022.
“This acquisition will provide us with well-established and high-quality operations, manufacturing complex extrusion dies in Europe and will also allow us to better support our global customers”, said Nick Gnatyuk, Vice President and General Manager of Exco’s Extrusion Group. “We have been looking to expand into Europe for some time and we see Halex as the perfect fit”.
Halex Extrusion Dies was founded in 1990 and operates four key manufacturing locations – two in Germany and two in the northern industrial region of Italy. The company is the second largest manufacturer of aluminium extrusion dies in Europe and the continent’s leading supplier of complex extrusion dies. Halex will complement Exco’s six existing extrusion die operations, located in Canada, USA (2), Mexico, Colombia and Brazil.
The transaction is valued at €40 million (C$58 million equivalent) on an enterprise value basis and will be funded with a combination of cash on hand and available bank lines. Halex will add almost €40 million in annual sales and is expected to be immediately accretive to Exco’s earnings per share. Exco will report the results of Halex within its Casting and Extrusion segment.
“The acquisition of Halex is a unique opportunity to add a strategic asset that will accelerate Exco’s growth and sustainability objectives”, said Darren Kirk, President and CEO of Exco. “We look forward to welcoming all Halex employees to Exco”.
A conference call to discuss the transaction will be held today at 10:00 am (Toronto time). To access the live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/mmc/p/6idkgeqn a few minutes before the event. . The conference call can be accessed by dialing toll free at (866) 572-8261 or internationally at (703) 736-7448. The conference ID is 7280532.
|Exco Technologies Limited (TSX-XTC, OTCQX-EXCOF)
|Darren Kirk, President and Chief Executive Officer
|(905) 477-3065 Ext. 7233
About Exco Technologies Limited:
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 16 strategic locations in 7 countries, we employ about 4,900 people and service a diverse and broad customer base.
Notice To Reader: Forward Looking Statements This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We use words such as “anticipate”, “may”, “will”, “should”, “expect”, “believe”, and similar expressions to identify forward-looking information and statements, especially with respect to sales, earnings per share and transaction closing date. These forward-looking statements include known and unknown risks, uncertainties, assumptions and other factors which may cause actual results or achievements to be materially different from those expressed or implied. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, the ability to successfully close the transaction in the timing as indicated in this release, the current global economic recovery from the COVID-19 pandemic and containment of any future or similar outbreak of epidemic, pandemic, or contagious diseases that may emerge in the human population, which may have a material effect on how we and our customers operate our businesses and the duration and extent to which this will impact our future operating results or the future results of Halex. Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. The Company will update its disclosure periodically and otherwise disclaims any obligations to update publicly or otherwise revise any such factors or any of the forward-looking information or statements contained herein to reflect subsequent information, events or developments, changes in risk factors or otherwise. For a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in our latest Annual Report, Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com or www.excocorp.com.