CALGARY, Nov. 1, 2017 /CNW/ - Mosaic Capital Corporation
("Mosaic") (TSX-V Symbols: M and M.DB) is
pleased to announce the acquisition of a 75% interest in the
business being carried on by Circle 5 Tool & Mold Inc.
("Circle 5").
Circle 5 is a supplier of molding solutions to Tier 1 automotive
part manufacturers, offering custom, high-precision molds and tools
for plastic injection production of highly-visible interior
automotive components. Circle 5's broad international
customer base produces interior components for today's leading
automotive brands including BMW, Ford, Volkswagen, General Motors,
Toyota, Daimler and Tesla. With an established track record
of over 30 years, Circle 5 is highly regarded in the industry for
its delivery of quality molds and tools based on strong customer
responsiveness, innovation and collaboration. Circle 5
operates out of a modern, 50,000-sq. ft. manufacturing facility in
Windsor, Ontario. The
remaining 25% of Circle 5 is being retained by its President and
primary operating shareholder, Saylo
Lam (41), a professional mechanical engineer who has been
involved with the company for over 18 years.
Mosaic's acquisition cost of $27
million was funded by cash and will be subject to typical
post-closing adjustments. Mosaic financed the transaction
with $7 million from available credit
facilities and $20 million from the
issuance of three year, 7% subordinated preferred units within a
newly formed limited partnership, which is 100% controlled by
Mosaic.
Saylo Lam, President of Circle 5
stated "Mosaic's involvement successfully solved a key ownership
succession issue, which results in an orderly transition of Circle
5's two founding shareholders, one of whom is my father. We
are excited to move forward with the Mosaic team, as we
collectively pursue a number of identified organic and acquisition
growth opportunities."
Mark Gardhouse, CEO of Mosaic
Capital commented "we are delighted to welcome Saylo Lam and his management team at Circle 5 as
Mosaic's newest operating partner and we look forward to a
long-term relationship. Circle 5 has an established
track record of strong financial growth and profitability within a
niche market that has an attractive outlook. This acquisition
illustrates the diversified growth model we are implementing and
offers a new business platform for future growth
opportunities."
ABOUT MOSAIC CAPITAL CORPORATION
Mosaic is a Canadian investment company that owns a portfolio of
established businesses which span a diverse range of industries and
geographies. Mosaic's strategy is to create long-term value for its
shareholders through accretive acquisitions, long-term portfolio
ownership, sustained cash flows and organic portfolio growth.
Mosaic achieves its objectives by maintaining financial discipline,
acquiring businesses at attractive valuations, performing extensive
acquisition due diligence, utilizing optimal transaction
structuring and working closely with subsidiary businesses after
acquisition.
Neither the 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.
FORWARD-LOOKING INFORMATION:
This news release may contain forward-looking information and
statements within the meaning of applicable Canadian securities
laws (herein referred to as "forward-looking statements") that
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. All information and statements in this news release
which are not statements of historical fact may be forward-looking
statements. The words "believe", "expect", "intend", "estimate",
"anticipate", "project", "scheduled", and similar expressions, as
well as future or conditional verbs such as "will", "should",
"would", and "could" often identify forward-looking statements. In
particular, forward-looking statements in this news release
include, but are not limited to: statements with respect to the
terms of the acquisition by Mosaic of a 75% interest in the
business carried on by Circle 5 and that Circle 5 has growth
potential. Such statements or information are only predictions and
reflect the current beliefs of management with respect to future
events and are based on information currently available to
management. Actual results and events may differ materially from
those contemplated by these forward-looking statements due to these
statements being subject to a number of risks and
uncertainties.
Undue reliance should not be placed on these forward-looking
statements as there can be no assurance that the plans, intentions
or expectations upon which they are based will occur. By their
nature forward-looking statements involve assumptions and known and
unknown risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions and other
forward-looking statements will not occur. Some of the assumptions
made by Mosaic, upon which such forward-looking statements are
based include, but are not limited to: the business operations of
Circle 5 will continue on a basis at least consistent with prior
years; there will be reasonable continuity of Circle 5's management
team; and future market conditions for Circle 5 will not be
materially different than anticipated by Mosaic.
A number of factors could cause actual results to differ
materially from those expressed or implied by the forward-looking
statements, including, but not limited to: general business and
economic conditions in geographic areas where Circle 5 has
operations; pricing pressures and other competitive factors; third
parties failing to honour their contractual obligations with Circle
5; procurement and pricing issues with suppliers; unforeseen cost
overruns on Circle 5's projects; legislative or regulatory
developments; the continued availability and cost of qualified
labour; the continued strength of the industries within which
customers of Circle 5 operate; and the continued ability to secure
new business. Should any of the risks or uncertainties facing
Mosaic and its subsidiaries materialize, or should assumptions
underlying the forward-looking statements prove incorrect, actual
results, performance, activities or achievements could vary
materially from those expressed or implied by any forward-looking
statements contained in this news release. Readers are cautioned
that the foregoing list of risks is not exhaustive. Additional
information on these and other factors that could affect the
operations or financial results of Mosaic and its subsidiaries are
included in Mosaic's annual information form for the year ended
December 31, 2016, a copy of which is
available under Mosaic's profile on SEDAR (www.sedar.com).
Although Mosaic believes that the expectations represented by
any forward-looking-statements contained herein are reasonable
based on the information available to it on the date of this news
release, management cannot assure investors that actual results,
performance or achievements will be consistent with these
forward-looking statements. Any forward-looking statements herein
contained are made as of the date of this news release and Mosaic
does not assume any obligation to update or revise them to reflect
new information, events or circumstances, except as required by
law.
SOURCE Mosaic Capital Corporation
