Brampton Brick Limited

Brampton Brick Limited

September 14, 2007 18:13 ET

Brampton Brick Announces Agreements to Sell Substantially All of Its Medical Waste Business

BRAMPTON, ONTARIO--(Marketwire - Sept. 14, 2007) -


Brampton Brick Limited (TSX:BBL.A) (the "Corporation") announced today that its 65% owned subsidiary, Medical Waste Management Inc. ("MWM"), has entered into an agreement to sell all of its Ontario medical waste business operations and assets, except for its 50% joint venture interest in Sharpsmart Canada Limited ("Sharpsmart"), to Stericycle, Inc. ("Stericycle"), and that MWM has also received from Stericycle a signed offer to purchase its medical waste business operations and assets in Nova Scotia.

Sale of the Nova Scotia assets and business operations is subject to a right of first refusal held by The Daniels Corporation Canada Limited ("Daniels"), MWM's joint venture partner in Sharpsmart. Both sale transactions are scheduled to close concurrently, irrespective of which party is ultimately the purchaser of the Nova Scotia business.

The aggregate sale price is $20.5 million, of which approximately $9.8 million will be received in cash on closing (subject to adjustment for the difference between estimated and actual working capital liabilities), assumption by the purchaser of net working capital liabilities of approximately $0.7 million and receipt of a promissory note in the amount of $10.0 million. The promissory note is to be paid in three equal, annual principal installments plus interest at 3.5% and will be secured by a letter of credit issued by a major financial institution.

The sale transactions are scheduled to close in the fourth quarter, subject to receipt of required consents and approvals, satisfaction of other customary conditions of closing and obtaining a favourable resolution of a potential dispute with Daniels and certain of its affiliated companies as described below.

Daniels has, to date, indicated that it is of the view that the sale of assets of MWM to Stericycle would constitute a breach by the Corporation and MWM of their Sharpsmart contractual arrangements with Daniels. The Corporation and MWM are confident that the proposed sale is permitted under the terms of such contractual arrangements. Should Daniels initiate legal proceedings to delay or prevent the completion of the transactions, the Corporation and MWM intend to take all appropriate steps available to them in order to defend their interests.

Certain statements contained herein constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors including, but not limited to, those identified under "Risks and Uncertainties" in the Corporation's 2006 Annual Report, which may cause actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

Brampton Brick Limited is Canada's second largest manufacturer of clay brick and manufactures concrete paving stones, retaining walls and enviro products under the Oaks Concrete Products trade name. Products are used for residential construction and for industrial, commercial, and institutional building projects. Da Vinci Stone Craft Ltd., a 75% owned subsidiary, manufactures fireplace surrounds and accessory products. Medical Waste Management Inc., a 65% owned subsidiary, operates facilities for the destruction of biomedical and pharmaceutical waste in Ontario, including the only commercially operated medical waste incinerator in Ontario, and Nova Scotia.

Contact Information

  • Brampton Brick Limited
    Jeffrey G. Kerbel
    President and Chief Executive Officer
    (905) 840-1011
    (905) 840-1535 (FAX)
    Brampton Brick Limited
    Ken Mondor
    Vice-President, Finance
    (905) 840-1011
    (905) 840-1535 (FAX)