Newalta Corporation
TSX : NAL

Newalta Corporation

October 17, 2007 08:00 ET

Newalta Completes Acquisition of Canada's Largest Lead Recycling Operation - Further Diversifies Cash Flows

CALGARY, ALBERTA--(Marketwire – October 17, 2007) - Newalta Income Fund ("Newalta") said today it has acquired the operating assets of Nova Pb Inc. ("Nova Pb") based in Ville Ste-Catherine, Quebec. Excluding transaction costs, Newalta paid $55 million, consisting of $45 million in cash with the balance paid by the issuance of 510,690 Newalta trust units. The effective date of the transaction is November 1, 2007.

"This acquisition further strengthens our business by diversifying our cash flows, expanding our service offering and enhancing our market presence in eastern Canada. We are pleased to add Nova Pb's experienced management group and talented people to our team," said Al Cadotte, President and Chief Executive Officer of Newalta.

"The addition of Nova Pb's lead recycling operations complements our current recovery and recycling services for industrial customers across Canada, which includes recovering products such as crude oil, lubricating oils, water, fuels, hydraulic fluids, solvents and antifreeze. Newalta is now the largest national industrial waste management and environmental services provider with over 85 locations and 2000 people.

"While the transaction is highly attractive on a stand-alone basis, there are numerous opportunities to drive improved performance by utilizing the facility's excess capacity to process additional used batteries collected through our national network. The recycled lead will continue to be marketed under the 'Nova Pb' brand," said Cadotte.

Newalta Income Fund is the largest Canadian industrial waste management and environmental services provider and focuses on maximizing the value inherent in industrial waste through the recovery of saleable products and recycling. It also provides environmentally sound disposal of solid, non-hazardous industrial waste. With talented people and a national network of facilities, Newalta serves customers in the automotive, forestry, manufacturing, mining, oil and gas, petrochemical, pulp and paper, steel and transportation service industries. Providing solid investor returns, exceptional customer service, safe operations and environmental stewardship has enabled Newalta to expand into new service sectors and geographic markets. Newalta Income Fund's units trade on the TSX as NAL.UN. For more information, visit www.newalta.com.

This news release may contain forward-looking statements relating to future operating results of the acquired business, the benefits to Newalta of the acquisition, and the success of integrating such business into Newalta's national facility network. These statements are based on current views and expectations of management that are subject to risks, uncertainties and assumptions that are difficult to predict, including risks, uncertainties and assumptions relating to general market conditions of the industries in which the acquired business relies on for raw materials and into which finished products are sold, future operating results, the ability to integrate the acquisition into Newalta's facility network and future capital needs. Actual results might differ materially from results suggested in any forward-looking statements whether as a result of new information, future developments or otherwise.

Contact Information

  • Anne M. MacMicken
    Director, Investor Relations
    (403) 806-7019;

    Ronald L. Sifton
    Executive Vice President and Chief Financial Officer
    (403) 806-7020