CALGARY, May 4, 2016 /PRNewswire/ - Horizon North Logistics Inc. ("Horizon North" or the "Corporation") (TSX – HNL) announced today that it has entered into an agreement to acquire Karoleena Inc. and its affiliates (collectively, "Karoleena") and has agreed in principle with DIRTT Environmental Solutions Ltd. for the utilization of their ICE® Interactive Software.
"The strategic acquisition of Karoleena will help drive Horizon North's permanent modular offerings as we move further into residential, retail and commercial prefabricated buildings. While coming from different markets, both Horizon North and Karoleena have numerous similarities including, among others, belief in modular construction, a focus on customers through a full service mentality, and a commitment to first time quality." noted Rod Graham, President and Chief Executive Officer of Horizon North. "We remain excited about the market opportunity posed by permanent modular construction and incorporating the design flair of Karoleena into Horizon North product offerings, including office complexes, hotels and multi-family residential dwellings. The combination of Horizon North's world class team, manufacturing excellence, and an unparalleled health and safety program with Karoleena's innovative product approach, start-up culture and an excellent understanding of the marketplace and buyer mentality outside of the traditional Horizon North customer base will result in synergies and position Horizon North for continued growth."
Karoleena is a manufacturer of designer prefabricated modular homes. Karoleena focuses on providing premium modern homes with superior design, quality, speed and craftsmanship through its pre-fabrication process. Karoleena homes are constructed in a modern fabrication facility located in Okanagan Falls, British Columbia and then delivered to and installed on site. Karoleena is able to offer its customers a move in ready home within six months of commencement of manufacturing. Horizon North and Karoleena have agreed to a purchase price of $2.5 million, payable in a combination of cash and Horizon North common shares. Closing of the acquisition is expected to occur in the second quarter of 2016 and is subject to customary closing conditions, including the approval of the Toronto Stock Exchange. For further information about Karoleena, please visit their website at www.karoleena.com
ICE® Interactive Software
Horizon North is pleased to announce the selection of DIRTT Environmental Solutions and their ICE® Interactive Software ("ICE®") for use in Horizon North's design process. ICE® provides graphical, interactive modelling which will allow Horizon North to produce real time, three dimensional designs for its customers. "We continue to focus on our expansion into residential, retail and commercial designer prefabricated buildings. ICE® is intended to support this expansion and will complement our lean manufacturing philosophy and assist us to find further efficiencies and reduce waste." noted Rod Graham. For further information about DIRTT, please see their website at www.dirtt.net
About Horizon North
Horizon North is a publicly-traded company that provides full service solutions in camp management accommodations and catering, matting and soil stabilization, remote power and energy generation systems, and relocatable and permanent modular structures. Horizon North provides a full range of these services to top tier clients in the LNG, oil sands, oil and gas, energy, mining/exploration, forestry and construction sectors. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers anywhere in Canada and Alaska. To find out more information about the Corporation, visit www.horizonnorth.ca
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Horizon North. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "expects", "anticipates" and similar expressions. This press release contains forward-looking statements pertaining to, among other things, the following: timing of completion of the acquisition; the aggregate purchase price of the acquisition; the issuance of Horizon North common shares as part of the purchase price for the acquisition; the synergies and potential growth opportunities created by combining the business of Karoleena with Horizon North and approvals for the acquisition, including regulatory approvals.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Horizon North as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Horizon North contained in this press release, which may prove to be incorrect, include the ability of Horizon North to receive all required regulatory approvals; the ability of Horizon North to satisfy the conditions to the acquisition; the anticipated benefits of the acquisition; and successfully integrating Horizon North and Karoleena as a single entity following closing.
Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Horizon North and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward-looking information. The material risk factors include, but are not limited to: failure of Horizon North to obtain necessary regulatory approvals; failure to realize anticipated synergies and failure of the parties to satisfy, in a timely manner, the other conditions to closing of the acquisition. Readers are cautioned that the foregoing list of risk factors is not exhaustive. Failure to obtain the necessary approvals, or the failure of Horizon North to otherwise satisfy the conditions of the acquisition may result in the acquisition not being completed on the proposed terms, or at all.
Although Horizon North believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. Horizon North's actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and, except as required by applicable securities laws, Horizon North disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Horizon North Logistics Inc.