SPECTRA PREMIUM INDUSTRIES INC.
TSX : SPD

SPECTRA PREMIUM INDUSTRIES INC.

January 09, 2007 15:01 ET

Shareholders of Spectra Premium Approve the Privatization

BOUCHERVILLE, QUEBEC--(CCNMatthews - Jan. 9, 2007) - Spectra Premium Industries Inc. (TSX:SPD) ("Spectra Premium"), announces today the approval of the privatization of Spectra Premium by which Spectra Premium intends to merge with a new corporation, 6551399 Canada Inc. ("Newco"). Newco's shareholders are Jacques Mombleau, Denis Poirier and Kerry Best, members of senior management of Spectra Premium (collectively, the "Senior Management") and Fonds de solidarite des travailleurs du Quebec (F.T.Q.), Desjardins Capital regional et cooperatif and Groupe Camada Inc., a company controlled by Mr. Placide Poulin, a director of Spectra Premium.

In accordance with the merger, the shareholders of Spectra Premium will receive, upon conclusion of the transaction $2.85 in cash per subordinate voting share and per multiple voting share of Spectra Premium they hold. The special resolution confirming the merger has been adopted by 97.69% of the votes cast at the extraordinary meeting of shareholders of Spectra Premium held today and by 97.43% of the votes cast by shareholders other than the parties related to Spectra Premium and Newco. The approval of the shareholders of Sprectra Premium constitutes one of the conditions to be fulfilled in order to conclude the merger.

The closing of the merger, which is subject to certain other conditions including namely obtaining the financing, should be carried out in the next few days.

PROFILES

Spectra Premium is the world leader in the manufacture of fuel tanks and related components for the automobile and light-truck aftermarkets. It ranks first in Canada and is a North American leader in the aftermarket for automotive and industrial radiators, radiator components and oil pans. It also maintains a presence in such markets as sending units, fuel pumps, body panels, condensers, compressors, complete heater cores and other air-conditioning parts. Over the past years, Spectra Premium expanded its activities in the OEM market by concluding agreements to supply steel fuel tanks and aluminum radiators and in addition, to supply radiators for industrial applications and heavy equipment. Spectra Premium has increased its presence in the OEM segment, following the acquisition of Trimag, one of the most important North American manufacturers of high-pressure die cast magnesium alloy parts. It currently employs approximately 1,300 people in its nine (9) plants and 18 distribution centers, which are located throughout Canada, the United States and Europe. Its shares are traded on the Toronto Stock Exchange (ticker symbol: SPD).

With assets of $6.6 billion, the Fonds de solidarite des travailleurs du Quebec (F.T.Q.) is a development capital fund that, through its RRSP, channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and contribute to Quebec's economic development. The organization is a partner, either directly or through its network members, in 1,681 companies. The Fund currently has over 573,000 shareholders and has helped, on its own or with other financial partners, create, maintain and support over 116,644 jobs. For more information, visit www.fondsftq.com

Desjardins Capital Regional et Cooperatif is a publicly traded company founded in 2001 on the initiative of Desjardins Group. The Company's primary mission is to raise venture capital to develop Quebec's economy and actively take part in the growth of cooperatives and the resource regions. With an authorized capitalization of $1.3 billion, Desjardins Capital Regional et Cooperatif supports companies and cooperatives in all regions of Quebec. For more information, visit www.capitalregional.com

Groupe Camada Inc. is a private joint-stock company that specializes in the investment and acquisition of mid- sized manufacturing business in order to help them to raise to the top of their respective industries. For more information, visit www.camada.ca

PROSPECTIVE FINANCIAL INFORMATION

Certain statements made in this release, including those concerning the expected closing of the transaction referred to herein, are forward-looking statements that involve risks and uncertainties, which may prevent expected future results form being achieved. For those statements, Spectra Premium claims the protection of the safe harbour for forward-looking statements contained in the Canadian and U.S. securities laws. Spectra Premium cautions that the actual future performance could be affected by a number of factors, including the fact that the expected closing of the transaction referred to in this lease is subject to customary closing conditions, many of which are beyond Spectra Premium's control. Therefore, future events and results may vary substantially from what Spectra Premium currently foresees. You will find in the 2006 annual report on page 26 a non exhaustive presentation of risks which could result in an important variance between our actual results and our actual expectations, which can be consulted on the following websites: http://www.sedar.com and http://www.spectrapremium.com.

Contact Information

  • Spectra Premium Industries Inc.
    Jacques Mombleau, CA
    President and Chief Executive Officer
    450-641-3656 ext. 2230
    or
    Spectra Premium Industries Inc.
    Denis Poirier, CA
    Executive Vice-President and Chief Financial Officer
    450-641-3656 ext. 2245
    or
    CG3 inc.
    Daniel Rheault
    514-286-5600 ext. 25