Drive Products Income Fund

Drive Products Income Fund

November 30, 2009 17:00 ET

Drive Products Income Fund Announces the Sale of Professional Distribution Services Division

TORONTO, ONTARIO--(Marketwire - Nov. 30, 2009) - Drive Products Income Fund (TSX:DPI.UN) announced today that it has sold the assets of Professional Distribution Services ("PDS"), a division of Drive Products, for $3.1 million to ASL Distribution Services Limited ("ASL"). A non-strategic asset, PDS is a packaging, warehousing, freight and logistics services business. The net proceeds will be used to reduce our operating debt and strengthen our balance sheet. Management will endeavor to replace this business with a strategic asset which will better complement our current operations. The sale closed as at close of business on November 30, 2009. A portion of the purchase price has been placed in escrow for 90 days and will be released at the end of such 90 day period, subject to certain standard adjustments and indemnity claims that will be determined over the 90 day period. The disposition process was a very positive experience with a very high degree of skill, professionalism and respect among all parties. As a full-service third party logistics provider, ASL will become a strategic partner that will help streamline and lower the Fund's cost for their logistics needs.

About Drive Products Income Fund (

Drive Products Income Fund holds a 52% indirect interest in Drive Products. Founded in 1983, Drive Products is a Canadian leader in the design and installation of systems solutions that transform a conventional new truck chassis into a specialized vehicle that meets a customer's technical and performance requirements. To achieve this, Drive Products offers a wide variety of products such as power take-offs, hydraulic pumps, motors and coolers, winches, cables and controls, drivelines, blowers and compressors, hoses and fittings, custom consoles, snowplows, spreaders and electronic spreader controls, from leading international manufacturers, in many instances as the sole distributor in Canada.

About ASL Distribution Services Limited ("ASL") (

ASL Distribution Services Limited (ASL) is an asset-based full-service third party logistics (3PL) provider to many industry leading, name brand and Fortune-500 companies. ASL celebrated their 50th anniversary this year, was recognized in February 2009 as one of Canada's 50 Best Managed Companies and is ISO 9001:2008 registered. With warehouses in Oakville (ON), Winnipeg (MB), Buffalo (NY) and transportation hubs in London (ON), Windsor (ON), and the Maritimes, ASL offers seamless customized logistical solutions, encompassing warehousing, fulfillment and all modes of transportation, including LTL, TL, intermodal, courier, air and expedited, utilizing its own fleet of trucks as well as services of partner carriers. Home and office / "last-mile" deliveries are performed through its Precision Home & Office Deliveries division.

Forward-Looking Statements

This press release contains forward-looking statements relating to expected future events and financial and operating results of the Fund. These statements involve known and unknown risks and uncertainties. Actual results may differ materially from those anticipated by such forward-looking statements for a variety of reasons, including without limitation, market and general economic conditions and the risks and uncertainties detailed from time to time in the Fund's continuous disclosure documents filed with the Canadian securities regulatory authorities. The Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

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