Savaria Corporation
TSX : SIS

Savaria Corporation

January 18, 2007 10:30 ET

Savaria Integrates the Operations of its Van-Action Subsidiary into its Laval Facilities

Significant Benefits: - Expected savings of approximately $800,000 annually - New showroom to display automotive vehicles for people with disabilities and to better display Savaria's accessibility products - Synergies at the administrative level - Plant utilization efficiencies in Montreal and Toronto

LAVAL, QUEBEC--(CCNMatthews - Jan. 18, 2007) - Savaria Corporation (TSX:SIS), the second largest company in the accessibility industry in North America, will invest $1.5 million over the coming months to integrate the operations of its wholly-owned subsidiary Van-Action (2005) Inc. ("Van-Action") into its headquarters on Autoroute 13, in Laval, Quebec. Currently, Van- Action occupies a 60,000-square-foot industrial space in Ville St-Laurent which will be sublet on the completion of the integration of its operations into Savaria's company-owned manufacturing headquarter.

"This investment, which will be financed using the Corporation's operating working capital, will provide us with significant benefits: better use of our plants' capacity in Montreal and Toronto, the sharing of our administrative resources, and the further outsourcing of the manufacture of certain components built into Van-Action's products. We expect to achieve savings of about $800,000 annually," explained Marcel Bourassa, Savaria's Chairman of the Board, President and Chief Executive Officer.

Jean-Francois Viau, Van-Action's Vice-President, Sales and Marketing, added: "At the same time, we will equip ourselves with a showroom that customers looking for adapted vehicles will be able to visit. This combining of our operations is an excellent initiative because it will favour the convergence of our efforts, as well as the quality of our products and services."

Forward-Looking Statements

Certain statements in this press release may be forward-looking. Forward-looking statements involve known and unknown risks, uncertainties or other factors that may cause the Corporation's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Savaria Corporation (www.savaria.com) is Canada's leader and the second largest accessibility company in North America. The Corporation designs, manufactures and distributes products, meeting the needs of people with mobility challenges, mainly stairlifts, vertical and inclined platform lifts, as well as elevators for residential and commercial use. Savaria's annualized sales of close to $65 million rely on a network of over 600 retailers in North America. The Corporation records close to 60% of its sales outside Canada and employs some 400 people. Van-Action Inc., Savaria's wholly-owned subsidiary, is Canada's largest company specializing in the adaptation of personal and commercial motor vehicles for mobility reduced persons.

Contact Information

  • Savaria Corporation
    Mr. Marcel Bourassa
    Chairman, President and Chief Executive Officer
    1-800-931-5655
    www.savaria.com