Not for dissemination in the United States or
through any wire service in the United States
Savaria Corporation (“Savaria” or the “Corporation”) (TSX:SIS), one
of North America’s leaders in the accessibility industry, is
pleased to announce that it has entered into an agreement with a
syndicate of underwriters led by National Bank Financial Inc. and
GMP Securities L.P. (collectively, the “Underwriters”), pursuant to
which the Underwriters have agreed to purchase, on a bought deal
basis, 3,000,000 common shares (the “Shares”) of the Corporation at
a purchase price of $16.60 per Share (the “Offering Price”), for
gross proceeds to the Corporation of $49,800,000 (the “Offering”).
The Underwriters have also been granted an option, exercisable in
whole or in part at any time up to 30 days following the closing
date, to purchase for resale up to an additional 450,000 Shares at
the Offering Price, which would result in additional gross proceeds
of $7,470,000.
The Shares will be offered in all provinces of
Canada pursuant to a short form prospectus to be filed by Savaria
as well as in the United States under applicable registration
statement exemptions.
The net proceeds of the Offering will be used to
reduce indebtedness under the Corporation’s existing revolving
credit facility, to provide further financial flexibility to fund
growth initiatives and for general corporate and working capital
purposes.
Mr. Marcel Bourassa, President and Chief
Executive Officer of Savaria, and Mr. Jean-Marie Bourassa, Chief
Financial Officer of Savaria, have committed to participate in the
Offering by purchasing, through a holding company owned by them in
equal proportions, $1 million worth of Shares, being 2.0% of the
Shares to be issued pursuant to the Offering.
The Offering is scheduled to close on or about
May 4, 2018 and is subject to certain conditions including, but not
limited to, the receipt of all necessary approvals including the
approval of the TSX and any applicable securities regulatory
authorities.
2018 Outlook and First Quarter
Update
Savaria’s first quarter results, to be announced
on May 10, 2018, remain in line with management's expectations and
Q1 budget, representing approximately 20% of full year budget as a
result of usual seasonality. Savaria is also reaffirming its full
fiscal year 2018 outlook, as released on March 8, 2018, with
respect to revenue of approximately C$268 million and adjusted
EBITDA in the range of $42.5 - $44.5 million, excluding any
new acquisitions.
Non International Financial Reporting
Standards (“IFRS”) MeasuresEBITDA and adjusted EBITDA are
non IFRS measures. These measures have no standardized definitions
in accordance with IFRS. These measures may therefore not be
comparable to similar measures reported by other companies. EBITDA
and adjusted EBITDA are defined by the Company as follows: EBITDA
means earnings before interest, income taxes, depreciation and
amortization while adjusted EBITDA means EBITDA as defined above
before realized and unrealized business acquisition costs, the
value adjustment on acquired inventories and the compensation
expense on share options granted.
This press release shall not constitute
an offer to sell or solicitation of an offer to buy the securities
in any jurisdiction. The Shares will not be and have not been
registered under the United States Securities Act of 1933 and may
not be offered or sold in the United States absent registration or
applicable exemption from the registration
requirements.
About Savaria
Savaria Corporation (savaria.com) is one of
North America’s leaders in the accessibility industry. It provides
accessibility solutions for the physically challenged to increase
their comfort, their mobility and their independence. Its product
line is one of the most comprehensive on the market. Savaria
designs, manufactures, distributes and installs accessibility
equipment, such as stairlifts for straight and curved stairs,
vertical and inclined wheelchair lifts, elevators for home and
commercial use, as well as ceiling lifts. Following its acquisition
closed in June 2017, Savaria also manufactures and markets a
comprehensive selection of pressure management products for the
medical market, medical beds for the long-term care market,
mattress overlays and foam pillows for the retail market and
certain products for the industrial market, primarily foam
products. In addition, Savaria converts and adapts vehicles to be
wheelchair accessible. It also operates a network of franchisees
and corporate stores through which new and recycled accessibility
equipment is sold. Savaria records around 66% of its revenue
outside Canada, primarily in the United States. It operates a sales
network of some 400 retailers in North America and employs some 800
people. Its plants are located in Laval and Magog (Quebec),
Brampton, Beamsville and Toronto (Ontario), Greenville (South
Carolina), Huizhou (China) and Brisbane (Australia).
Cautionary Notice Regarding
Forward-Looking Statements
Certain information in this press release may
constitute “forward-looking statements” regarding Savaria,
including, without being limited thereto, understanding of the
elements that might affect the Corporation’s future, relating to
its financial or operating performance, the costs and schedule of
future acquisitions, supplementary capital expenditure
requirements, legislative matters, the expected use of the net
proceeds of the Offering, and the timing of conditions to closing
of the Offering. Most frequently, but not invariably,
forward-looking statements are identified by the use of such terms
as “plan”, “expect”, “should”, “could”, “budget”, “expected”,
“estimated”, “forecast”, “intend”, “anticipate”, “believe”,
variants thereof (including negative variants) or statements that
certain events, results or shares “could”, “should” or “will” occur
or be achieved. Such statements involve known and unknown risks,
uncertainties and other factors liable to cause Savaria’s actual
results, performance or achievements to differ materially from
those set forth in or underlying the forward-looking statements.
Such factors notably include general, economic, competitive,
political and social uncertainties. Although Savaria has attempted
to identify the key elements liable to cause actual measures,
events or results to differ from those described in the
forward-looking statements, other factors could have an impact on
the reality and produce unexpected results. The forward-looking
statements contained herein are valid at the date of this press
release. Savaria undertakes no obligation to update forward-looking
statements if circumstances or management’s estimates or opinions
should change, except as required by law. As there can be no
assurance that these forward-looking statements will prove
accurate, actual future results and events could differ materially
from those anticipated therein. Accordingly, readers are strongly
advised not to unduly rely on these forward-looking statements.
For further information:
Hélène
Bernier, CPA, CAVice-President, Finance1-800-931-5655, ext.
248helene.bernier@savaria.com |
|
Marcel
BourassaPresident and Chief Executive
Officer1-800-661-5112marcel.bourassa@savaria.com |
|
|
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www.savaria.comFacebook:
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