C.A. Bancorp Inc.

C.A. Bancorp Inc.

December 03, 2007 09:26 ET

C.A. Bancorp Inc. (TSX:BKP) Announces $10 Million Investment in Bermingham Foundation Solutions

TORONTO, ONTARIO--(Marketwire - Dec. 3, 2007) - C.A. Bancorp Inc. ("C.A. Bancorp") (TSX:BKP) is pleased to announce the completion of a $10 million equity investment in Bermingham Foundation Solutions ("Bermingham"), a privately held company based in Hamilton, Ontario. Bermingham intends to use the proceeds of the $10 million investment to capitalize on a series of growth initiatives across the global infrastructure sector. C.A. Bancorp will take a significant minority position in Bermingham and have representation on Bermingham's Board of Directors.

Founded in 1897, Bermingham has been owned and operated by the Bermingham family since its inception. Bermingham is a leader in the specialized foundation industry, building customized pile driving equipment for sale or lease in 49 countries around the world. Additionally, Bermingham provides specialized foundation construction services, employing Bermingham equipment, to clientele in the infrastructure, real estate, and energy sectors.

Specialty foundations form the underpinning in almost all large infrastructure developments such as bridges, ports, roadworks, liquid natural gas ("LNG") plants, and other major construction developments such as high-rise buildings. Bermingham has built foundations and provided specialty foundation testing for projects around the globe including: the landmark Burj Al Arab in Dubai, Taipei 101 in Taipei, and in Canada: the Pickering Nuclear Plant, the Canaport LNG plant, the majority of bridges and overpasses at Toronto's Pearson International Airport, and the Sir Adam Beck hydroelectric mega-project in Niagara Falls. To customers, Bermingham is known by the names of its divisions and products: Bermingham Construction, Berminghammer, Statnamic and Enercret.

"We are very excited to be making this significant equity investment in Bermingham. Bermingham exemplifies the type of investment that C.A. Bancorp seeks to make on behalf of its shareholders: a mature, cash-flow positive company operating in an industry with very strong long-term growth prospects, both in Canada and globally" said Mark Gardhouse, President of C.A. Bancorp. "Demand for infrastructure is increasing rapidly as a result of ageing infrastructure in the developed world and new infrastructure development in the emerging markets. We believe that Bermingham is a recognized industry leader and is well positioned to provide equipment and services to infrastructure, real estate, and energy developments both in Canada and around the world."

Patrick Bermingham, Chief Executive Officer of Bermingham stated, "C.A. Bancorp's investment in Bermingham represents the first significant investor outside of the Bermingham family. As the fourth-generation leader of the company, I believe there are tremendous growth opportunities for the company as the global demand for specialty foundations increases. We are excited to be partnering with C.A. Bancorp. C.A. Bancorp will bring strategic and financial expertise as the company pursues a number of attractive growth opportunities in the industry sectors we serve. As the company celebrates its 110th anniversary in operation, I believe we are well positioned to grow over the next 100 years."

The $10 million equity investment was made by C.A. Bancorp and the Sentry Select Total Strategy Fund ("Total Strategy") (TSX: TSF.UN). C.A. Bancorp funded $9.2 million and Total Strategy funded the remaining $0.8 million of the investment. As partners with the Bermingham family, the investment will fully participate in the equity growth of Bermingham. In addition the investment will earn an 8% dividend.

C.A. Bancorp has also agreed to provide a standby acquisition facility to Bermingham.

Bermingham Foundation Solutions

Bermingham specializes in all aspects of foundation construction. Bermingham supplies foundation tools and expertise for large infrastructure projects globally. To customers around the world, it is known by the names of its divisions and products: Bermingham Construction, Berminghammer, Statnamic and Enercret. For more information on Bermingham visit www.berminghammer.com.

C.A. Bancorp Inc.

C.A. Bancorp is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. C.A. Bancorp is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.

Sentry Select Total Strategy Fund

Sentry Select Total Strategy Fund is a publicly traded closed-end fund which provides investors with an opportunity to benefit from Sentry Select Capital Corp.'s extensive management expertise across various investment strategies and C.A. Bancorp's experience with private equity investments. C.A. Bancorp is the manager of the fund.

Trading information

C.A. Bancorp common shares trade on the Toronto Stock Exchange under the symbol BKP.

This news release contains forward-looking statements with respect to the investment in Bermingham, and matters concerning the business, operations, and strategy of C.A. Bancorp and Bermingham. These statements relate to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent C.A. Bancorp's beliefs regarding future events. Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as "will", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue", similar words or the negative thereof. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur.

The future business, operations and performance of C.A. Bancorp and Bermingham discussed herein could differ materially from those expressed or implied by such statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Additional, important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, conditions affecting the construction sector, conditions affecting the ability of Bermingham to pay dividends on its preferred shares, competition, changes in government regulation, interest rates, tax related matters, and reliance on key personnel. C.A. Bancorp cautions that risk factors discussed in applicable continuous disclosure filings required by law that C.A. Bancorp has made and filed on SEDAR should also be considered carefully and that undue reliance not be placed on forward-looking statements as events and results could differ materially from those expressed or implied by forward-looking statements made by C.A. Bancorp.

Unless otherwise stated, all forward looking statements speak only as of the date of this news release. C.A. Bancorp does not undertake, and specifically disclaims, any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

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