Savaria Corporation
TSX : SIS

Savaria Corporation

June 30, 2009 17:09 ET

Savaria Corporation Issuer Bid

LAVAL, QUEBEC--(Marketwire - June 30, 2009) - Savaria Corporation ("Savaria" or the "Corporation") (TSX:SIS), the second largest company in the accessibility industry in North America, today announced that it has commenced with the issuer bid for up to 4,000,000 common shares (14.8% of the issued and outstanding common shares) at a price of C$0.90 per share with a 35 day deposit period expiring on August 4, 2009 ("Issuer Bid'). Savaria currently has 27,061,014 common shares issued and outstanding.

Savaria previously announced its intention to proceed with the Issuer Bid in a press release dated May 28, 2009.

As previously announced, Savaria is completing the Issuer Bid to provide a liquidity opportunity for shareholders and because the board of directors and management believe that the common shares have been trading in price ranges which do not fully reflect the value of Savaria business and future prospects, and in volume that do not provide reasonable liquidity for shareholders. Mr. Marcel Bourassa, President and Chief Executive Officer, and Mr. Jean-Marie Bourassa, Chief Financial Officer, will not tender any shares into the Issuer Bid, either directly or indirectly.

Burkman Capital Corporation ("BCC") was retained by the Corporation to prepare an independent valuation ("Valuation") pursuant to the Issuer bid. The Valuation was prepared by BCC based on its professional judgment and in compliance with Multilateral Instrument 61-101. The Valuation is based upon techniques and assumptions that BCC considers appropriate in the circumstances for the purposes of arriving at an opinion as to the range of fair market value of the common shares given the nature and status of Savaria's overall business operations.

Subject to the assumptions, limitations, restrictions and the scope of BCC's work as set out in the Valuation, BCC concluded that in its opinion, the fair market value of 100% of the issued and outstanding common shares as at June 25, 2009 is in the range of $21,200,000 to $24,500,000 ($0.78 to $0.91 per common share).

A summary of the Valuation can be found in the Issuer Bid circular sent to shareholders. A copy of the Valuation may be obtained on request from the VP Finance, Savaria Corporation, 2724 Etienne-Lenoir Street, Laval, Quebec, H7R 0A3, Telephone: (800) 931-5655. The Valuation has also been filed on SEDAR.

Savaria received approval from the National Bank of Canada for a loan up to the maximum principal amount of $4,000,000 ("Loan") which can be used to finance the acquisition of the common shares by Savaria pursuant to the Issuer Bid. The interest on the Loan shall be calculated at prime + 1% and is subject to, among other customary provisions, Savaria maintaining in its bank accounts an amount equal to 50% of the amount of the Loan outstanding.

Savaria Corporation (www.savariaconcord.com) is Canada's leader and the second largest accessibility company in North America. The Corporation designs, manufactures and distributes products meeting the needs of people with mobility challenges, primarily stairlifts, vertical and inclined platform lifts, as well as elevators for residential and commercial use. Through its subsidiary Van-Action (2005) Inc., Savaria also converts and adapts automotive vehicles for the disabled. Its sales rely on a network of some 600 retailers in North America. Savaria records approximately 60% of its sales outside Canada and employs some 400 people.

Contact Information

  • Savaria Corporation
    Marcel Bourassa
    Chairman of the Board, President and Chief Executive Officer
    1-800-931-5655
    or
    Savaria Corporation
    Helene Bernier, CA
    Vice-President, Finance
    1-800-931-5655
    www.savariaconcord.com