Semcan Inc.
TSX VENTURE : STT

Semcan Inc.

January 07, 2008 13:25 ET

Semcan Inc. Announces That It Has Entered Into a Sales and Purchase Agreement for the Acquisition of Enviro Pro Tech, Inc.

TORONTO, ONTARIO--(Marketwire - Jan. 7, 2008) - Semcan Inc. (TSX VENTURE:STT) announced today that it has entered into a Sales and Purchase agreement for the acquisition of Enviro Pro Tech, Inc., an environmental engineering firm based in Pensacola, Florida specializing in environmental solutions to protect Florida's valuable groundwater resources.

"Today's announcement follows a long and thoughtful sale process," said W. Grady Swann, the company's founder and major shareholder. "We received strong interest from several private suitors. We chose the Semcan Inc. team because of the breadth of their engineering expertise and the depth and credibility of their commitment to building aggressively upon the foundation we have established. In addition, Semcan Inc. offers greater diversity for our clients and more growth opportunities for our employees."

Mr. Swann will remain in the position of President to the Company, reporting to the President of Semco Systems Ltd, the subsidiary of Semcan Inc. that has management accountability for the Engineering and Design segment of the Group's activities.

"We are very excited to acquire Enviro Pro Tech, as this is the first step to launching our strategy into the United States market place, "said Phil Jamieson, Chairman and CEO of Semcan Inc., and continued, "The purchase price of US$3.5M represents an EBITDA multiple of approximately four times, and will be financed from working capital, vendor take back and additional debt. The deal, subject to fulfillment of the conditions in the Purchase and Sales agreement, is expected to close on or before 31st March 2008".

About Semcan Inc.

SEMCAN is a growth company expanding through acquisitions within the Industrial and Distribution sectors. SEMCAN seeks out well managed profitable companies that meet certain financial parameters. SEMCAN works with existing management to grow the acquired companies both organically and through further complementary acquisitions. SEMCAN provides the central finance and administrative functions, allowing operational management to remain focused on bottom line profitability thereby increasing shareholder value.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Semcan Inc.
    Phil Jamieson
    Chairman
    (416) 703-1692 x 221