Empire Industries Ltd.

Empire Industries Ltd.

December 05, 2011 16:11 ET

Empire Industries Announces Agreement to sell its Winnipeg and Welland Structural Steel Fabrication Operations

WINNIPEG, MANITOBA--(Marketwire - Dec. 5, 2011) - Empire Industries Ltd. (TSX VENTURE:EIL) today announced it had signed a definitive agreement to sell its Empire Iron Works structural steel fabrication operations in Winnipeg and its Hopkins Steel Works facility in Welland to the Supreme Group, western Canada's largest steel fabrication company. This is a cash transaction valued at approximately $3.8 million plus the value of selected working capital. The transaction is scheduled to close December 31, 2011, subject to typical commercial closing conditions, including regulatory approval.

Empire continues to participate in the structural steel market, primarily through its Empire Iron Works facility in Edmonton and its Dynamic Structures facility in Port Coquitlam. "The Company remains focused on fabricated steel markets where it has unique advantages such as the oil sands market in Alberta," said Guy Nelson, CEO of Empire industries. "Our partnership with the Athabasca Chipewyan First Nation in Ft. McMurray positions us uniquely in one of the fastest growing industrial markets in North America. Empire also plans to introduce very competitive, high quality fabricated steel into the Alberta industrial market from our joint venture in China."

"Empire Iron Works started its operations in Winnipeg in 1958 and has a very impressive track record working in this regional market," stated John Leder, President of Supreme Group. "These facilities in Manitoba and Ontario have a long history of producing high quality fabricated steel and will fit well with our other fabrication facilities across western Canada."

Proceeds of this transaction will be used to pay down bank debt as well as strengthen liquidity.

About Empire Industries Ltd.

Empire Industries Ltd. manufactures specialized engineered products and sells these products domestically and in select international export markets. The company also provides steel fabrication & installation services, primarily to the industrial, commercial and infrastructure market in Western Canada. The company also has two key strategic equity partnerships; a 49% ownership of ACE Industrial Services that operates in the oil sands industrial maintenance services market, and a 45% ownership of a Chinese joint venture company in the steel fabrication market in Asia. Empire's common shares are listed on the TSX Venture Exchange under the symbol EIL.

For more information about the Company, visit www.empind.com.

Reader Advisory

This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". These forward looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this press release, and Empire assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information