Pacific Safety Products Inc.
TSX VENTURE : PSP

Pacific Safety Products Inc.

April 29, 2011 09:07 ET

Pacific Safety Products Announces Sale of APS Distributors Business Assets to R. Nicholls Distributors Inc.

ARNPRIOR, ONTARIO--(Marketwire - April 29, 2011) - Pacific Safety Products Inc. (TSX VENTURE:PSP), a leading North American manufacturer of advanced armour and protective solutions, announced today that it has entered into an agreement to sell its Bedford, Nova Scotia based APS Distributors business to R. Nicholls Distributors Inc. ("Nicholls"). The transaction is anticipated to close the first week of May 2011.

Completion of this transaction for PSP is in line with its strategic direction and a key element of its transformation strategy to divest itself of non-core assets, reduce debt and debt service costs, supplement working capital, refocus on core products, and restore sustainable profitability.

"We are now squarely focused on our core competency as a manufacturer and supplier of personal protection solutions," said Douglas Lucky, Chief Executive Officer. "The sale puts APS Distributors into the hands of an experienced national operator for the benefit of our mutual customers."

About Nicholls

Nicholls is a Montreal headquartered private company. For more than 30 years, Nicholls has been supplying Canadian private security and public law enforcement agencies across Canada with a vast selection of specialized equipment and uniform products. Today, Nicholls is the largest Canadian distributor of such equipment and one of the largest manufacturers of uniforms in the country.

About PSP

The mission statement of Pacific Safety Products Inc. is ...we bring everyday heroes home safely(R). PSP is an established industry leader in the production, distribution and sale of high-performance and high-quality safety products for the defence and security market. These products include body armour to protect against ballistic, stab and fragmentation threats, ballistic blankets to reduce blast effects, tactical clothing, and protective products against chemical and biological hazards. PSP is the largest body armour manufacturer in Canada, directly supplying the Canadian Department of National Defence, Federal Government Agencies and major Canadian law enforcement organizations. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armour products under the GH Armor Systems(R) brand to U.S. based law enforcement and private security firms. The Company also produces tactical clothing. Pacific Safety Products is a reporting issuer in British Columbia, Alberta and Ontario, Canada and publicly trades under the symbol PSP on the TSX Venture Exchange.

Forward-Looking Information: This news release contains certain statements which may constitute "forward-looking information" within the meaning of applicable securities laws. These statements relate to anticipated or assumed events or results including, without limitation, the expected impact of the transaction on PSP's working capital, the anticipated closing date of the transaction and PSP's strategy to, restore sustainable profitability. Forward-looking information is based on estimates and assumptions made by PSP in light of its experience and its perception of historical trends, current conditions and expected future developments as well as management's best judgment based on current facts and assumptions that it considers reasonable including that all necessary third party approvals and other conditions to completion of the sale transaction will be satisfied or waived and that there are no material unanticipated variations in the budgeted revenues or expenses for the balance of PSP's business units. Although the Company believes that the expectations conveyed by the forward-looking information are reasonable based on information currently available to it, these statements are not guarantees and there can be no assurance that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking information involves a number of known and unknown risks, uncertainties and assumptions which may cause actual results or events to differ materially from those stated including the inability to satisfy any of the conditions of closing for the transaction as well as general industry and market conditions and other factors which are discussed more fully in documents filed by PSP with applicable securities regulatory authorities at www.sedar.com. The Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change, except as required by applicable law.

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

Contact Information

  • Pacific Safety Products Inc.
    Douglas Lucky
    Chief Executive Officer
    (613) 623-6001
    www.pacsafety.com