Heroux-Devtek Inc.
TSX : HRX

Heroux-Devtek Inc.

September 20, 2007 08:22 ET

Heroux-Devtek Inc. Announces Treasury & Secondary Offering via "Bought Deal"

LONGUEUIL, QUEBEC--(Marketwire - Sept. 20, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Heroux-Devtek Inc. (TSX:HRX) ("Heroux" or the "Company") is pleased to announce that the Company and certain selling shareholders that hold common shares ("Common Shares") of Heroux (collectively, "the Selling Shareholders"), have entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. and including National Bank Financial Inc., Laurentian Bank Securities Inc., Versant Partners Inc., Cormark Securities Inc., Desjardins Securities Inc., Raymond James Ltd. and Research Capital Corp. (the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 3.0 million Common Shares from the Company and 2.6 million shares from the Selling Shareholders at a price of $10.00 per Common Shares (the "Issue Price") for aggregate gross proceeds to the Company and the Selling Shareholders of $56,000,000 (the "Offering").

One of the Selling Shareholders has granted the Underwriters the right to arrange for the sale, on a "best efforts" agency basis, of up to an additional 400,000 Common Shares for additional gross proceeds of up to $4,000,000, which option is exercisable in whole or in part until 30 days after the Closing Date.

The Company will not receive any proceeds from the secondary offering. The net proceeds from the treasury offering will be for working capital and general corporate purposes and for acquisitions as the case may be.

A preliminary short form prospectus to qualify the offering for distribution to the public will be filed with securities regulatory authorities on or before September 26, 2007.

The Common Shares under this offering will be offered by way of a short form prospectus in all of the provinces of Canada and in the United States only on a private placement basis pursuant to available exemptions from the registration requirements of the United States Securities act of 1933, as amended.

The offering is scheduled to close on or about October 11, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals.

Profile:

Heroux-Devtek (TSX:HRX), a Canadian company, serves two main market segments: Aerospace and Industrial Products, specializing in the design, development, manufacture and repair of related systems and components. Héroux-Devtek supplies both the commercial and military sectors of the Aerospace segment with landing gear systems (including spare parts, repair and overhaul services) and airframe structural components. The Company also supplies the industrial segment with large components for power generation equipment and precision components for other industrial applications. Approximately 70% of the Company's sales are outside Canada, mainly in the United States. The Company's head office is located in Longueuil, Québec with facilities in the Greater Montreal area (Longueuil, Dorval, Laval and Rivière-des-Prairies); Kitchener and Toronto, Ontario; Arlington, Texas and Cincinnati, Ohio.

Contact Information

  • MaisonBrison
    Martin Goulet, C.F.A.
    (514) 731-0000