Brampton Brick Limited
TSX : BBL.A

Brampton Brick Limited

October 03, 2007 18:57 ET

Brampton Brick Announces Completion of the Sale of Its Medical Waste Business in Ontario and Escrow Closing of the Nova Scotia Sale

BRAMPTON, ONTARIO--(Marketwire - Oct. 3, 2007) - Brampton Brick Limited (the "Corporation") (TSX:BBL.A) reported today that its 65% owned subsidiary, Medical Waste Management Inc. ("MWM"), has completed the previously announced sale to Stericycle, Inc. ("Stericycle") of its medical waste business operations and assets in Ontario, excluding its 50% joint venture interest in Sharpsmart Canada Limited ("Sharpsmart").

The sale price of $13.8 million was satisfied by a cash payment on closing of approximately $3.6 million, assumption by Stericycle of estimated net working capital liabilities of approximately $0.2 million and receipt of a promissory note in the amount of $10.0 million. The promissory note is to be paid in three equal, annual principal instalments commencing in October, 2008, plus interest at 3.5%, and is secured by a letter of credit issued by a major financial institution. The cash payment and the amount of the net working capital liabilities to be assumed are subject to adjustment based on the final determination of the actual net working capital liabilities as at the date of closing.

A portion of the cash proceeds was utilized by MWM to repay its term bank loan in the amount of approximately $1.8 million.

The completion of the previously announced sale by MWM to Stericycle of its business operations and assets in Nova Scotia remains conditional upon the receipt of certain consents by no later than October 15, 2007. On completion, sale proceeds of $6.7 million are to be satisfied by a cash payment on closing of $6.3 million and assumption by Stericycle of estimated net working capital liabilities of approximately $0.4 million. These amounts are subject to adjustment based on the final determination of the actual net working capital liabilities as at the date of closing.

The sale of the Ontario assets and business operations is expected to result in a non-recurring, pre-tax gain for accounting purposes of approximately $9.3 million. After deducting estimated income taxes and the non-controlling interest's 35% share of the net after-tax gain, the Corporation's 65% share for accounting purposes is estimated to be approximately $4.6 million, or $0.42 per Class A Subordinate Voting Share and Class B Multiple Voting Share outstanding. The sale and related transactions will be reported in the Corporation's fourth quarter results.

The pending sale of the Nova Scotia assets and business operations, if completed as anticipated, is expected to result in a non-recurring, pre-tax gain for accounting purposes of approximately $5.6 million. After deducting estimated income taxes and the non-controlling interest's 35% share of the net after-tax gain, the Corporation's 65% share for accounting purposes is estimated to be approximately $2.9 million, or $0.27 per Class A Subordinate Voting Share and Class B Multiple Voting Share outstanding. This sale and related transactions will also be reported in the Corporation's fourth quarter results, if completed as anticipated.

Certain statements contained herein constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors including, but not limited to, those identified under "Risks and Uncertainties" in the Corporation's 2006 Annual Report, which may cause actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

Brampton Brick Limited is Canada's second largest manufacturer of clay brick and manufactures concrete paving stones, retaining walls and enviro products under the Oaks Concrete Products trade name. Products are used for residential construction and for industrial, commercial, and institutional building projects. Da Vinci Stone Craft Ltd., a 75% owned subsidiary, manufactures fireplace surrounds and accessory products. The Corporation also holds 50% joint venture interests in Sharpsmart Canada Limited, which provides a proprietary reusable sharps containment system to hospitals in Ontario, and in Universal Resource Recovery Inc., which plans to construct and operate a waste composting and material recycling facility in Welland, Ontario.

Contact Information

  • Brampton Brick Limited
    Jeffrey G. Kerbel
    President and Chief Executive Officer
    (905) 840-1011
    (905) 840-1535 (FAX)
    or
    Brampton Brick Limited
    Ken Mondor
    Vice-President, Finance
    (905) 840-1011
    (905) 840-1535 (FAX)
    Email: investor.relations@bramptonbrick.com