Decisive Dividend Corporation Announces Acquisition of the Assets of Alberta Production Machining Ltd.
KELOWNA, BC, March 14, 2024 /CNW/ - Decisive Dividend Corporation (TSXV: DE) (the "Corporation" or "Decisive") is pleased to announce the acquisition of the assets of Alberta Production Machining Ltd. ("APM"), by its wholly-owned subsidiary Hawk Machine Works Ltd. ("Hawk"), for cash consideration of $2.7 million, from arm's length parties.
The assets of APM are operated out of a leased facility in Edmonton, Alberta, and provide Hawk with increased machining capabilities and access to additional equipment and people to service the strong demand from its growing customer base.
The cash consideration was funded using the Corporation's new syndicated credit facility and brings Decisive's cumulative acquisition funding mix to 50% debt and 50% equity.
Tim Stewart, President of Hawk, noted:
"We are excited to be adding APM's assets, which significantly enhance and complement Hawk's existing capabilities. This strategic move nearly doubles the footprint of our operation, providing a solid foundation for future growth and customer diversification."
Jeff Schellenberg, Chief Executive Officer of Decisive, noted:
"Acquiring the assets of APM was an important opportunity for us to support organic growth of Hawk, an entity that has been performing extremely well; experiencing significant growth in 2023 on the back of Tim's efforts to grow and diversify the business. We have set aggressive organic growth targets for our subsidiaries and Tim's identification of this acquisition opportunity will allow Hawk to redeploy the assets acquired in a way that supports additional capacity and further organic growth."
About Decisive Dividend Corporation
Decisive Dividend Corporation is an acquisition-oriented company, focused on opportunities in manufacturing. The Corporation's purpose is to be the sought-out choice for exiting legacy-minded business owners, while supporting the long-term success of the businesses acquired, and through that, creating sustainable and growing shareholder returns. The Corporation uses a disciplined acquisition strategy to identify already profitable, well-established, high quality manufacturing companies that have a sustainable competitive advantage, a focus on non-discretionary products, steady cash flows, growth potential and established, strong leadership.
For more information on Decisive, or to sign up for email notifications of Corporation press releases, please visit www.decisivedividend.com.
Cautionary Statements
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.
This press release contains forward-looking statements. These statements relate to the potential benefits of the acquisition of the assets of APM to the Corporation. Forward-looking statements are necessarily based upon a number of expectations and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the Corporation's control and many of which are subject to change. Readers are cautioned not to place undue reliance on forward-looking statements which only speak as to the date they are made. Although management believes that the expectations and assumptions underlying such forward-looking statements are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. A number of factors could cause actual future results, performance, achievements and developments of the Corporation to differ materially from anticipated results, performance, achievements and developments expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information.
SOURCE Decisive Dividend Corporation
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