Gienow Windows & Doors Income Fund
TSX : GIF.UN

Gienow Windows & Doors Income Fund

June 30, 2005 15:41 ET

Gienow Windows & Doors Income Fund Announces First Acquisition

CALGARY, ALBERTA--(CCNMatthews - June 30, 2005) -

NOT FOR DISTRIBUTION IN THE United States OR TO U.S. CITIZENS

Gienow Windows & Doors Income Fund (the "Fund") (TSX:GIF.UN) announces that it has entered into an agreement with Chantecler Windows and Doors, Inc./ Portes et Fenetres Chantecler, Inc. ("Chantecler") to indirectly acquire the operating assets of Chantecler and to assume all related liabilities and obligations subject to all necessary approvals and to the negotiation of a definitive asset purchase agreement.

With annual sales of approximately $15 million, Chantecler serves the greater Ottawa/Hull new construction market with its manufacturing facility located in Gatineau, Quebec and provides the Fund with a beachhead into the new construction market in Eastern Canada.

"This will be our first acquisition as an income fund and validates our previously stated position of consolidating a fragmented industry", said Dave Munro, President and CEO of the Fund. "The acquisition of Chantecler gives us expanded scale and scope in a major new construction market in Ontario with great access to Quebec. Chantecler is well respected throughout our industry and has a leading market position in the Ottawa/Hull region."

Founded in 1958, Chantecler has recently completed a major equipment modernization program to increases its daily production capacity. Its reach is complementary to the Fund's existing manufacturing facility in Alexandria, Ontario.

Dominique Van Voorhis, President of Farley Windows Inc., a subsidiary of the Fund, will assume a dual role and become the President of both Chantecler and Farley upon completion of the acquisition.

"The Fund expects to enter into a definitive purchase and sale agreement and close the transaction on or about July 15, 2005", said Mr. Munro.

"We expect that this transaction will become accretive to distributable cash per unit by year end and will enhance the Fund's ability to integrate supply chains across Canada to meet customers' demands in various market areas" said Richard Boyer, CFO and Vice President of Finance of the Fund. "We look forward to integrating the Chantecler business into the Fund and building upon the employee, customer and vendor relationships previously established by Chantecler".

The Fund will finance the acquisition on an interim basis using an expansion of its current credit facility and its current working capital facilities.

About Gienow Windows & Doors Income Fund

Gienow Windows & Doors Income Fund is an unincorporated, open-ended, limited-purpose trust established under, and governed by the laws of the Province of Alberta. The Fund holds a 98% limited partnership interest in the Gienow Windows & Doors Limited Partnership and owns all of the outstanding shares of Farley Windows Inc., a window manufacturer in Alexandria, Ontario. The Fund is one of the largest Canadian window and door manufacturers and one of only two Canadian window and door manufacturers with a national manufacturing and sales presence.

Contact Information

  • Gienow Windows & Doors Income Fund
    Dave Munro
    President and Chief Executive Officer
    (403) 203-8200 or Toll Free at (800) 297-6102
    or
    Gienow Windows & Doors Income Fund
    Richard Boyer
    Vice President Finance and CFO
    (403) 203-8200 or Toll Free at (800) 297-6102
    Email: info@gienowincomefund.ca
    Website: www.gienowincomefund.ca