Savaria Corporation
TSX : SIS

Savaria Corporation

December 01, 2009 11:43 ET

Savaria Corporation Launches a Normal Course Issuer Bid

LAVAL, QUEBEC--(Marketwire - Dec. 1, 2009) - Savaria Corporation ("Savaria") (TSX:SIS), the second largest company in the accessibility equipment industry in North America today announced that it has received Toronto Stock Exchange ("TSX") approval to a Notice of Intention to implement a normal course issuer bid. According to the notice, Savaria intends to purchase for cancellation, in accordance with the requirements of the TSX, up to 1,118,060 common shares, representing 5 % of the 22,361,219 common shares that are issued and outstanding as of November 24, 2009.

The average daily trading volume ("ADTV") of Savaria's common shares over the last six completed calendar months was 1,526. According to the TSX requirements, Savaria is entitled, on any trading day, to purchase up to 1,000 common shares. Once a week, in excess of the daily 1,000 repurchased limit, Savaria may also purchase a block of shares not owned by an insider (i) having a purchase price of $200,000 or more, (ii) of at least 5,000 shares having a purchase price of at least $50,000, or (iii) of at least 20 board lots of shares which total 150% or more of the ADTV.

The normal course issuer bid will begin on December 3, 2009, and will run until the earlier of the date on which purchases under the bid have been completed and December 2, 2010. These purchases are to be made through the facilities of the TSX in accordance with its requirements on normal course issuer bids. The price, which Savaria will pay for any common shares, will be the market price at the time of acquisition plus brokerage fees.

An independent valuation of the fair market value of the common shares of Savaria ("Valuation") has been prepared by the firm Burkman Capital Corporation ("BCC"), as of June 25, 2009, in the context of an Offer to purchase for cash. Subject to the assumptions, limitations, restrictions and the scope of BCC's work as set out in the Valuation, BCC concluded that in its opinion, the fair market value of 100% of the issued and outstanding common shares as at the Valuation date is in the range of $21,200,000 to $24,500,000 or $0.78 to $0.91 per common share. A copy of the Valuation may be obtained on request from Mrs. Helene Bernier, VP Finance of Savaria, 2724 Etienne-Lenoir Street, Laval, Quebec, H7R 0A3, Telephone: 1-800-931-5655. Also, a copy of the Valuation is being filed on SEDAR under Savaria's profile.

Savaria has purchased 475,400 of its common shares at a weighted average price of $0.70 within the last twelve months pursuant to a normal course issuer bid which began on November 6, 2008 and terminated on November 5, 2009.

Savaria believes that the purchase of its shares makes appropriate use of its available cash, and therefore, that the issuer bid is in the best interests of Savaria and its shareholders.

ABOUT SAVARIA

(www.savariaconcord.com) is Canada's leader and the second largest accessibility company in North America responding to the needs of people with mobility challenges. The Corporation designs, manufactures and distributes primarily elevators for residential and commercial use, as well as stairlifts and inclined platform lifts. Through its subsidiary Van-Action, Savaria converts and adapts automotive vehicles for the disabled and offers scooters and motorized wheelchairs as well. Its line of products, one of the world's most comprehensive, enables Savaria to stand out by proposing an integrated and customized solution for its disabled and elderly customers' mobility needs. Savaria records approximately 60% of its sales outside Canada, primarily in the United States, and is currently penetrating the Chinese market. The Corporation has a network of some 600 retailers in North America and employs more than 370 people at its head office in Laval (Quebec) and in its plants in Ville Saint-Laurent (Quebec), Brampton (Ontario) and Huizhou (China).

FORWARD LOOKING STATEMENTS

Certain statements may constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Corporation to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

Contact Information

  • Savaria Corporation
    Marcel Bourassa
    Chairman of the Board, President and Chief Executive Officer
    1-800-931-5655
    or
    Savaria Corporation
    Helene Bernier, CA
    Vice-President, Finance
    1-800-931-5655
    www.savariaconcord.com