Starwood Industries Inc.

May 17, 2006 11:05 ET

Starwood Industries Inc. Announces Execution of Letter of Intent to Acquire Wood By-Product Processing Operations

TORONTO, ONTARIO--(CCNMatthews - May 17, 2006) - Starwood Industries Inc. (Starwood, or the "Company") today announced that Starwood Manufacturing Inc, its wholly-owned subsidiary, has reached an agreement in principle with NorWa Environmental Solutions Inc. and NorWa Manufacturing and Distribution Company Limited (collectively, "NorWa") providing for the acquisition of substantially all of the operations and related assets of NorWa's wood pelletizing and wood by-product processing businesses which are located in Wawa, Ontario.

The parties have agreed to observe an exclusive due diligence period during which Starwood shall conduct a financial and facility review of NorWa's business and operations. Subject to the successful completion of due diligence and the receipt of all necessary consents and regulatory approvals, the transaction is expected to close during the third quarter of 2006.

The purchase price of the transaction will be determined by the parties subsequent to the completion of the due diligence period and is anticipated to be satisfied by way of a combination of (i) cash, (ii) the assumption of certain liabilities of NorWa, and (iii) the issuance of Starwood common shares.

Peter Prytula, President of Starwood, stated: "The acquisition of the NorWa operations is an important step in Starwood's strategic plan of developing an environmentally friendly and beneficial process to dispose of its wood-waste by-products. The acquisition also brings Starwood closer to its goal of achieving complete vertical integration of its wood-based operations."

About Starwood

Starwood specializes in the manufacturing and coating of single strip hardwood flooring, produced in a variety of widths from wood species such as American red oak and ash, European white oak and steamed beech, Guyana exotics and Canadian maple and birch. Other wood species are currently being reviewed by Starwood for market acceptability. Starwood's ultra-violet pre-finishing line allows Starwood to offer these wood species in a variety of popular pre-finished colours using a range of sealers such as titanium, ceramic and aluminium oxide.

Issued and Outstanding: Common Shares: 36,985,068

Contact Information

  • Starwood Industries Inc.
    Peter Prytula
    President
    (905) 822-6125