Savaria Corporation
TSX : SIS

Savaria Corporation

May 28, 2009 11:55 ET

Savaria Corporation Proceeding With Issuer Bid

LAVAL, QUEBEC--(Marketwire - May 28, 2009) - Savaria Corporation ("Savaria" or the "Corporation") (TSX:SIS), the second largest company in the accessibility industry in North America, today announced that its board of directors has approved in principle proceeding with a substantial issuer bid for up to 4,000,000 common shares (14.7% of the issued and outstanding common shares) at a price of C$0.90 per share. Savaria currently has 27,200,000 common shares issued and outstanding.

Savaria is making the offer 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. It should be noted that the two named executive officers, Mr. Marcel Bourassa, President and Chief Executive Officer, and Mr. Jean-Marie Bourassa, Chief Financial Officer, do not intend to tender any shares into the issuer bid, either directly or indirectly.

The board intends to retain an independent valuator to provide a formal valuation. All common shares purchased pursuant to this issuer bid will be cancelled by the Corporation.

It will be a condition of proceeding with the issuer bid that the Corporation has financing arrangements in place. Savaria is currently reviewing its options with respect to current credit available or the possibility of new debt financing for the bid. It is expected that shareholders would receive material related to this issuer bid in July 2009, and it is expected to have a 35-day deposit period. Completion of the issuer bid is subject to regulatory approval.

With this announcement, Savaria will immediately suspend its ongoing normal course issuer bid program whereby it has been repurchasing its stock in the open market for cancellation. Savaria will consider reinstituting the normal course issuer bid if it opts not to proceed with the substantial issuer bid or upon completion of the substantial issuer bid.

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