Circa To Acquire Manufacturing Operation
CALGARY, July 19 /PRNewswire-FirstCall/ - Circa Enterprises Inc. (CTO- TSX), a manufacturer of surge protection devices and related components for the telecom industry, is pleased to announce that it has entered into an agreement to purchase 100% of the outstanding shares of a privately held custom metal fabricating operation located in Markham, Ontario for consideration of $1,100,000, including the issuance of 100,000 Circa common shares at an ascribed price of $1.10. It is anticipated that the closing of the transaction will occur within the next ten days. The Markham company is debt free, has approximately $300,000 in working capital, and is expected to have an immediate accretive effect on Circa's earnings. Its customers include companies in the electronics, communications, retail, and technology sectors. The acquisition allows Circa to diversify its business interests and expand its control over its current manufacturing supply chain. Ivan Smith, Circa's President and CEO states that "this acquisition successfully meets our search criteria in that it is a healthy, profitable business with excellent growth potential. The purchase also offers Circa an opportunity to establish a presence in the Ontario marketplace, where potential exists for growth in sales of our present products and new products." Circa will add the Markham facility to its existing manufacturing locations in Calgary and Hudson, Florida. The Company is also relocating its U.S. surge protection sales and distribution to a new facility in Tampa, Florida, slated for occupancy this fall. The Tampa location provides increased access to distribution channels and moves the sales force closer to a growing market place. Circa Enterprises Inc. is a public company with offices in Alberta and Florida, trading on the Toronto Stock Exchange under ticker symbol CTO. The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
SOURCE Circa Enterprises Inc.
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