Business & Finance
Business and Finance
Business and Finance
Fri, July 17, 2009
Thu, July 16, 2009 Uni-Select Inc.: Uni-Select Inc.: Sale of the Assets of the Heavy Duty Group
BOUCHERVILLE, QUEBEC--(Marketwire - July 16, 2009) - Uni-Select (TSX:UNS) announces that it has concluded agreements for the sale of the assets of its Heavy Duty Group that has activities in Canada. The division related to replacement parts, tools and accessories for heavy-duty vehicles is to be sold to UAP Inc. and the wheels division to Robert Thibert Inc. These 2 transactions should generate $22 Million in cash in the third quarter and result in a non-recurring loss of approximately $5.0 Million. The proceeds of the sales will reduce debt and interest expense will decrease accordingly.
The results of Heavy Duty Group, with annual sales of $65 Million or 5% of Uni-Select's overall revenues will be presented as discontinued activities in the second quarter results to be announced on August 5th, 2009.
"Over time, our Heavy Duty Group deployed efforts to grow market share in Canada but did not attain the desired level of profitability. With the downturn in the transport industry, we have come to the conclusion that it would be in the best interest of Uni-Select to focus on its core activities related to the distribution of automotive replacement parts and accessories. These transactions are in keeping with the guidelines of our strategic plan. We intend to continue our growth through acquisitions in both Canada and the United States."
"In discussions leading to the agreements, the purchasers have expressed their interest in retaining a majority of Palmar's employees. I would like to thank all of Palmar's employees for their contribution and commitment over the years " commented Richard G Roy, President and Chief Executive Officer of Uni-Select.
The transactions should be completed on or before August 17th, 2009 and are subject to customary closing conditions.
Uni-Select is a Canadian leader in the distribution of automotive replacement parts, equipment, tools and accessories and, through Uni-Select USA, Inc., the Company also provides services to customers in the United States where it is the 7th largest distributor. The Uni-Select NetworkTM includes over 2,500 independent jobbers and services 3,500 points of sale in North America. Uni-Select is headquartered in Montreal. Uni-Select shares (UNS) are traded on the TMX.
Certain statements made in this press release contain forward-looking statements which, by their very nature, include risks and uncertainties, such that actual results could differ from those indicated in those forward-looking statements. For additional information with respect to the risks and uncertainties, refer to the Annual Report filed by Uni-Select and available on SEDAR. Unless required to do so pursuant to applicable securities legislation, Uni-Select assumes no obligation as to the updating or revision of the forward-looking statements as a result of new information, future events or other changes.
