NAPEC Inc.
TSX : NPC

NAPEC Inc.

October 09, 2015 11:50 ET

Napec Inc. Announces the Acquisition of Bemis, LLC

Strategic acquisition will enhance NAPEC's presence in the U.S. Northeast

DRUMMONDVILLE, QUEBEC--(Marketwired - Oct. 9, 2015) - NAPEC Inc. ("NAPEC" or the "Corporation") (TSX:NPC) today announced that its U.S. subsidiary Riggs Distler & Company, Inc. ("RDC") has acquired Bemis, LLC ("Bemis"), a business unit of Willbros Group, Inc. (NYSE:WG).

Founded in 1981 and based in Jacksonville, Vermont, Bemis provides major utility companies in the U.S. Northeast with construction and maintenance services for electricity transmission and distribution networks, as well as environmental construction and road matting services. Over the last four years, Bemis has generated average annual earnings before interest, taxes, depreciation and amortization ("EBITDA") of more than US$4.0 million. Its workforce currently exceeds 40 employees.

The transaction provides for a purchase price of US$19.2 million, subject to certain adjustments. NAPEC has financed the acquisition through a combination of existing and new credit facilities. The Bemis management team, led by Rodney Bemis, will remain in place.

"The acquisition of Bemis is in keeping with NAPEC's strategic objectives to broaden its geographical coverage and service offering, while fostering cross-selling opportunities. Bemis will significantly improve our presence in the New England area where it has solid relationships with leading utility service providers who will also benefit from RDC's wide pool of expertise. In addition, Bemis' road matting services represent a new, value-added expertise that we can leverage across our network. This synergistic and accretive transaction represents an important step forward for NAPEC", said Pierre L. Gauthier, President and Chief Executive Officer of NAPEC.

NON-IFRS MEASURE

EBITDA is a measure that has no standardized meaning prescribed by IFRS and is thus considered to be a non-IFRS measure. Therefore, this measure may not be comparable to similar measures presented by other issuers. This measure is presented and described in this release in order to provide additional information regarding the Corporation's liquidity and its ability to generate funds to finance its operations.

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements that reflect management's current expectations regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management assumes no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.

OVERVIEW OF THE CORPORATION

NAPEC is a corporation operating in the energy sector. The Corporation is a leading service provider to the public utility and heavy industrial markets mainly in Quebec, Ontario and the eastern United States. NAPEC and its subsidiaries build and maintain electrical transmission and distribution grids, as well as networks for gas utilities. In addition, the Corporation installs gas-powered and electric-powered heavy equipment for utilities, gas-fired industrial power plants, and petrochemical facilities in North America.

Further information regarding NAPEC is available in the SEDAR database (www.sedar.com) and on the Corporation's website at www.napec.ca.

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