CALGARY, Nov. 20, 2015 /CNW/ - Circa Enterprises Inc.
(CTO-TSXV) ("Circa"), a manufacturer of equipment for the
telecommunication, electrical utility, and construction industries,
announced today that it has entered into a definitive agreement to
acquire substantially all of the assets of Alberta Computer Cable
Inc. ("ACC"), a cable manufacturer and distributor. The
agreement was signed November 20,
2015 and is effective on December 1, 2015. Upon
completion of the acquisition, the business will operate as Alberta
Computer Cable, a division of Circa Enterprises Inc.
"The Alberta Computer Cable acquisition will extend our
technology solutions to a broader market while strengthening our
OEM and custom manufacturing capabilities" said James Waddock, Senior VP of Circa. Mr.
Waddock added, "This acquisition represents a natural and highly
complementary fit with our existing portfolio and is an important
step in our ongoing growth strategy to expand our product
range."
The cash transaction is expected to close in the fourth quarter
of 2015 and remains subject to standard closing
conditions. Funding for the transaction is from existing
resources and is expected to be accretive in the second quarter of
2016 when the operations of ACC will be relocated to Circa's
facilities in Calgary,
Alberta.
About Circa Enterprises
Circa Enterprises Inc. is a
public company headquartered in Calgary,
Alberta with operations in Alberta, Ontario and Florida. Circa manufactures
and sells outdoor enclosures, electrical equipment, and other goods
to customers in the telecommunications, electrical, and
construction industries. The outstanding common shares of
Circa are listed and trade on the TSX Venture Exchange under the
trading symbol CTO. Neither 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.
About Alberta Computer Cable
Operating since 1985,
Alberta Computer Cable distributes digital connectivity products
and specializes in custom cables and wiring harnesses for Original
Equipment Manufacturers (OEM).
Forward Looking Statements
Certain
information in this News Release may constitute "forward-looking"
information that involves known and unknown risks, uncertainties,
future expectations and other factors which may cause the actual
results, performance or achievements of the Company or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking information. When used in this News Release, this
information may include words such as "anticipate", "estimate",
"may", "will", "expect", "believe", "plan" and other terminology
and specifically includes reference to the completion and timing of
the referenced acquisition and the impact of such acquisition on
the earnings of Circa. These statements are neither promises
nor guarantees, but involve known and unknown risks and
uncertainties and are based on both the views of management and
assumptions that may cause our actual results, levels of activity,
performance or achievements to be materially different from any
future results, levels of activities, performance or achievements
expressed in or implied by these forward looking statements.
This information reflects current expectations regarding future
events and operating performance and speaks only as of the date of
this News Release. Except as required by law, we assume no
obligation to update or revise forward-looking information to
reflect new events or circumstances. Additional information is
available in the Company's Management Discussion and Analysis,
which can be found on SEDAR at www.sedar.com.
SOURCE Circa Enterprises Inc.
