AirBoss Of America Corp.

AirBoss Of America Corp.

October 21, 2013 08:34 ET

AirBoss of America Corp. Completes Acquisition of Flexible Products Co. and Announces New Credit Facility

Acquisition and financing highlights:

- Expanded product offering and diversification into a growth market

- Expected incremental revenues over $100M and EBITDA of $9M

- New financing accordion feature to support growth and other acquisitions

NEWMARKET, ONTARIO--(Marketwired - Oct. 21, 2013) - AirBoss of America Corp. (TSX:BOS) (the "Company" or "AirBoss"), announced today the successful completion of its acquisition of all the shares of Flexible Products Co. ("Flexible Products"), a privately-owned U.S. company that is a leading supplier of innovative and cost-effective anti-vibration solutions to the North American automotive market. The acquisition was first announced on September 30, 2013.

AirBoss has acquired Flexible Products through an all cash transaction valued at approximately US$51 million, which includes certain working capital adjustments associated with the ongoing operations of the business. The acquisition is expected to be immediately accretive to the Corporation's earnings per share and free cash flow per share.

The acquisition was financed with debt, with the Company announcing that it has entered into a new long-term debt facility with a syndicate of banks led by its existing banker. The new facility is comprised of a US$25 million senior secured multi-currency revolver, a US$15 million senior secured revolving credit facility, a US$45 million senior secured term loan, a C$8.7 million fixed rate term loan and a C$5 million fixed rate term loan. Proceeds of the credit facilities will be used to refinance all existing loans of the Company, for the acquisition of Flexible Products and associated transaction costs, and for general corporate purposes, thereby improving AirBoss' capital structure and providing greater flexibility to support the execution of its growth strategy.

"We are very pleased to complete the acquisition of Flexible Products, allowing the Company to expand its product offering," said Mr. Robert Hagerman, President and CEO of AirBoss. "The ability to finance the acquisition with a new long-term facility reflects the growing confidence in the business of AirBoss, and will provide an excellent basis for the Company to move forward with its business plan."

About AirBoss of America Corp.

AirBoss of America Corp. develops, manufactures, and sells high quality, proprietary rubber based products offering enhanced performance and productivity to transportation, military and industrial markets. With a capacity to supply over 250 million pounds of rubber annually to a diverse group of rubber manufacturers, AirBoss is also one of North America's largest custom rubber compounding companies. The Corporation's shares trade on the TSX under the symbol BOS. Visit

Forward-Looking Information:

Certain statements contained or incorporated by reference herein, including those that express management's expectations or estimates of future developments or AirBoss' future performance, constitute "forward-looking statements" within the meaning of applicable securities laws, and can generally be identified by words such as "will", "may", "could" "expects", "believes", "anticipates", "forecasts", "plans", "intends" or similar expressions. These statements are not historical facts but instead represent management's expectations, estimates and projections regarding future events and performance.

Forward-looking statements are necessarily based upon a number of opinions, estimates and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. AirBoss cautions that such forward-looking statements involve known and unknown contingencies, uncertainties and other risks that may cause AirBoss' actual financial results, performance or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by those forward-looking statements. Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including without limitation: impact of general economic conditions; its dependence on key customers; cyclical trends in the tire and automotive, construction, mining and retail industries; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; AirBoss' ability to maintain existing customers or develop new customers in light of increased competition; changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws and potential litigation; ability to obtain financing on acceptable terms; environmental damage caused by it and non-compliance with environmental laws and regulations; potential product liability and warranty claims and equipment malfunction. This list is not exhaustive of the factors that may affect any of AirBoss' forward-looking statements.

All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Investors are cautioned not to put undue reliance on forward-looking statements. All subsequent written and oral forward-looking statements attributable to AirBoss or persons acting on its behalf are expressly qualified in their entirety by this notice. Forward-looking information contained herein is made as of the date of this press release and, whether as a result of new information, future events or otherwise, AirBoss disclaims any intent or obligation to update publicly these forward-looking statements except as required by applicable laws. Risks and uncertainties about AirBoss's business are more fully discussed in the Management's Discussion and Analysis of Financial Condition and Results of Operations in the 2012 Annual Report to Shareholders under the heading "Risk Factors".

Contact Information

  • AirBoss of America Corp.
    Gren Schoch

    AirBoss of America Corp.
    R.L. Hagerman