Pacific Safety Products Inc.

Pacific Safety Products Inc.

April 09, 2007 16:17 ET

Pacific Safety Products Inc. Announces Further Details of U.S. Acquisition

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - April 9, 2007) - Pacific Safety Products Inc. (TSX VENTURE:PSP)("PSP" or "the Company") is pleased to announce further details of its pending acquisition (the "Acquisition") of the assets of Gator Hawk Armor Inc. ("Gator Hawk"). As previously announced, the acquisition is subject to US Federal Court approval before April 30, 2007.

The purchase price consideration of USD $3.85 million was funded by a combination of USD $3,465,000 in cash and USD $385,000 in shares of PSP valued at CAD$1.00 per share at the exchange rate prevailing on the date the acquisition closes. In addition to the purchase price, the agreement includes an "earn-out" of up to USD $300,000 based on certain revenue targets of the Gator Hawk product line being achieved in fiscal 2008. The cash component of the acquisition was funded by the previously announced private placement of Subscription Receipts of CAD $4.5 million.

"We anticipate that the addition of the Gator Hawk product line and distributor network to our existing Sentry framework will be accretive to earnings on a per share basis," commented David Scott, Chairman and CEO of PSP.


The mission statement of Pacific Safety Products Inc. is ...we bring everyday heroes home safely™. 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, and protective products against chemical and biological hazards. PSP is the largest armour manufacturer in Canada and supplies its products to the Canadian Department of Defence, Federal Government Agencies and major law enforcement organizations across the country. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armour products to U.S. based law enforcement and private security firms. The Company also produces tactical clothing and emergency medical kits.

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific Safety Products Inc.
    David Scott
    Chairman and Chief Executive Officer
    (250) 491-0911 or Toll Free: 1.888.PSP.ARMR (1-888-777-2767)
    (250) 491-0930 (FAX)