Pacific Safety Products Inc.

Pacific Safety Products Inc.

November 02, 2007 17:12 ET

Pacific Safety Products Inc. Completes APS Distributors Ltd. Acquisition

KELOWNA, BRITISH COLUMBIA--(Marketwire - Nov. 2, 2007) - Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or the "Company") - announced today that it has completed its previously announced acquisition (the "Acquisition") of the shares of APS Distributors Ltd. ("APS") for consideration of approximately $5.0 million.

David Scott, CEO of PSP, stated, "We are very excited about the addition of APS Distributors Ltd. to our law enforcement business. APS has a well-earned reputation for being a customer-focused distributor. With the full complement of police supplies and the distribution sales network of APS, PSP expects to leverage this into improved results in both market penetration, sales growth and financial performance."

Financing for the Acquisition was obtained in part by way of the Company's own cash and an increase in the line of credit. The APS purchase price consideration of CAD $5.0 million was funded by a combination of CAD $4,000,000 in cash and CAD $1,000,000 in Common Shares of PSP valued at CAD $1.00 per share.

About PSP

The mission statement of Pacific Safety Products Inc. is ...we bring everyday heroes home safely™. PSP is an established industry leader in the production, distribution and sale of high-performance and high-quality safety products for the defence and security market. These products include body armor to protect against ballistic, stab and fragmentation threats, ballistic blankets to reduce blast effects, and protective products against chemical and biological hazards. PSP is the largest armor manufacturer in Canada and supplies its products to the Canadian Department of Defence, Federal Government Agencies and major law enforcement organizations across the country. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armor products to U.S. based law enforcement and private security firms. The Company also produces tactical clothing and emergency medical kits. Pacific Safety Products is a reporting issuer in British Columbia, Alberta and Ontario, Canada and publicly trades under the symbol PSP on the TSX Venture Exchange.

Forward-Looking Statements: This release may contain forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates", and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales in some products.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific Safety Products Inc.
    David Scott
    Chief Executive Officer
    (250) 491-0911
    Pacific Safety Products Inc.
    Jacques Bonaventure
    VP Corporate Development
    (613) 623-6001 x. 226