TORONTO, March 1, 2021 /CNW/ - Andlauer Healthcare
Group Inc. (TSX: AND) ("AHG") today announced that it has closed
its previously announced acquisitions of 100% of Skelton Canada
Inc. ("Skelton Canada") and 49% of Skelton USA Inc. ("Skelton USA", and together with Skelton Canada, the "Skelton Companies") for
total aggregate consideration of approximately C$114.7 million, subject to customary working
capital adjustments (together, the "Acquisitions"). AHG expects the
Acquisitions to be immediately accretive to cash flow and earnings
per share.
The Skelton Companies are specialized in the transportation of
refrigerated healthcare products. The Skelton Companies will join
AHG's comprehensive platform of dedicated healthcare supply chain
solutions and continue to operate independently led by President,
North America, Ron Skelton and Vice President, Mike Skelton.
AHG financed the Acquisitions through a combination of cash on
hand and by drawing C$75 million on
its credit facilities and issuing 757,576 AHG subordinate voting
shares to the shareholders of the Skelton Companies. In connection
with closing of the Acquisitions, AHG increased the size of
its credit facilities. The amended facilities now consist of a
revolving facility in the aggregate principal amount of up to
C$100 million and a term facility in
the aggregate principal amount of up to C$50
million.
"I would like to extend a warm welcome to the dedicated
employees and loyal customers of the Skelton Companies," said
Michael Andlauer, Chief Executive
Officer of AHG. "The Skelton Companies are industry leaders in the
specialty transportation space, and an excellent addition to the
Andlauer Healthcare Group platform. The Acquisitions represent a
key strategic opportunity for AHG to expand its capacity to provide
specialized transportation services in Canada, and to enter the U.S. market in
partnership with an established operator."
Ron Skelton, North American
President, Skelton Companies,
commented, "We are proud of the Skelton legacy, and confident that
this transaction will open up new and exciting opportunities for
the Skelton Companies to broaden their existing network and
provide an enhanced suite of services to their longstanding
customers."
Advisors
Goodmans LLP acted as legal counsel to AHG and Owens Wright LLP
acted as legal counsel to the Skelton Companies.
About the Skelton Companies
Skelton Truck Lines Ltd., a subsidiary of Skelton Canada, was founded in 1962 by
Larry Skelton. The Skelton Companies
have grown to a fleet size of 100 trucks and 120 trailers with a
state-of-the-art terminal and maintenance facility in Canada. With Skelton's highly specialized
validated and qualified equipment, it has developed a niche in the
transportation of deep-frozen plasma products and vaccines, as well
as temperature sensitive 2° to 8° Celsius medicines. For more
information on the Skelton Companies, please visit:
www.skeltontruck.com.
About AHG
AHG is a leading and growing supply chain management company
offering a robust platform of customized third-party logistics
("3PL") and specialized transportation solutions for the healthcare
sector. AHG's 3PL services include customized logistics,
distribution and packaging solutions for healthcare manufacturers
across Canada. AHG's specialized transportation services, including
air freight forwarding, ground transportation, dedicated delivery
and last mile services, provide a one-stop shop for clients'
healthcare transportation needs. Through its complementary service
offerings, available across a coast-to-coast distribution network,
AHG strives to accommodate the full range of its clients'
specialized supply chain needs on an integrated and efficient
basis. For more information on AHG, please visit:
www.andlauerhealthcare.com.
Forward-looking Information
This news release may contain forward-looking statements
(within the meaning of applicable securities laws) including,
without limitation, the anticipated benefits of the Acquisitions,
including the extent to which they are expected to be immediately
accretive to cash flow and earnings per share. The forward-looking
statements in this news release are based on certain
assumptions including, without limitation, general
business, economic, competitive and legal matters, political and
social uncertainties (including the impacts of the COVID-19
pandemic) and the Skelton Companies continuing to perform as they
have recently. They are not guarantees of future performance
and involve risks and uncertainties that are difficult to control
or predict. A number of factors could cause actual results to
differ materially from the results discussed in the forward-looking
statements, including, but not limited to, the risk that the
acquired businesses will not perform as expected and AHG will not
be able to successfully integrate the Acquisitions. There can be no
assurance that forward-looking statements will prove to be accurate
as actual outcomes and results may differ materially from those
expressed in these forward-looking statements. Readers, therefore,
should not place undue reliance on any such forward-looking
statements. Further, these forward-looking statements are made as
of the date of this news release and, except as expressly required
by applicable law, AHG assumes no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
SOURCE Andlauer Healthcare Group Inc.