Newalta Corporation
TSX : NAL

Newalta Corporation

April 07, 2014 16:46 ET

Newalta Engages RBC Capital Markets as Financial Advisor for Strategic Review of Industrial Division

CALGARY, ALBERTA--(Marketwired - April 7, 2014) - Newalta Corporation ("Newalta") (TSX:NAL) announced today that the company has engaged RBC Capital Markets to conduct a review of a full range of potential strategic alternatives for Newalta's Industrial Division, including a potential sale, IPO or spin-off of the division, in whole or in parts. This work is being undertaken in the context of the comprehensive review, announced on December 11, 2013, to improve Newalta's productivity and profitability, particularly in the Industrial Division.

"Newalta is continuing to drive strong organic growth in its New Markets and Oilfield divisions, and we have an active program underway to enhance the value of our Industrial Division," said Al Cadotte, President and CEO. "We are reviewing alternatives for this business with a clear focus on unlocking shareholder value."

The Industrial Division employs 900 people and operates a network of over 35 locations across Canada. The Division provides a broad range of environmental waste management services to a number of industries, including automotive, construction, pulp and paper, mining, manufacturing, refining, steel and transportation. Newalta has been developing an onsite services capability within the Industrial Division that is similar to the model that has helped drive the rapid growth of the company's New Markets and Oilfield divisions.

The Industrial Division also features Canada's largest lead-acid battery recycling facility in Ville Ste-Catherine, Québec, an engineered non-hazardous solid waste landfill in Stoney Creek, Ontario, and a used oil re-refining facility in North Vancouver, British Columbia.

In December 2013, Newalta announced a program to achieve approximately $10 million in annualized ongoing cash savings within its Industrial Division. The company took a number of actions in the first quarter of 2014 towards achieving this goal, including closure of three facilities in eastern Canada and overhead reductions in associated support functions.

Newalta is North America's leading provider of innovative, engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from industrial residues. We serve customers onsite directly at their operations and through a network of 85 locations in Canada and the U.S. Our proven processes, portfolio of more than 250 operating permits and excellent record of safety make us the first choice provider of sustainability enhancing services to oil, natural gas, petrochemical, refining, lead, manufacturing and mining markets. With a skilled team of more than 2,200 people, two decade track record of profitable expansion and commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.

This press release contains forward-looking information. Although Newalta believes that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on it because Newalta can give no assurance that it will prove to be correct. Forward-looking information is based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Newalta and described in the forward-looking information contained in this press release. Among the various factors that could cause results to vary materially from those indicated in the forward-looking information include: the ability to realize on the productivity and profitability initiatives being undertaken in the Industrial Division and in particular the anticipated value and sustainability of the cash savings from such initiatives; and the result and recommendations of the review being undertaken by our financial advisor. Readers should also be aware that the forward-looking information is also affected by the risk factors described in Newalta's other annual information form and those set forth from time to time in Newalta's continuous disclosure filings with Canadian securities regulatory authorities, which are available under Newalta's SEDAR profile at www.sedar.com.

Contact Information

  • Newalta Corporation
    Anne M. Plasterer
    Executive Director, Investor Relations
    (403) 806-7019

    Newalta Corporation
    Stephanie MacVicar
    Director, Investor Relations
    (403) 806-7391
    www.newalta.com