Savaria Corporation

Savaria Corporation

September 15, 2005 08:30 ET

Savaria Ratifies the Acquisition of Concord Elevator Inc.

LAVAL, QUEBEC--(CCNMatthews - Sept. 15, 2005) - Savaria Corporation (TSX:SIS) announces the acquisition of Concord Elevator Inc. ("Concord"), a Brampton, Ontario based company that designs and manufactures elevators and vertical platform lifts and distributes them around the world. This significant transaction, which follows the signature of a letter of intent dated April 25, 2005, doubles Savaria's business volume and makes it the second largest manufacturer of accessibility products in North America.

Subsequent to due diligence, Savaria has acquired all of Concord's outstanding shares for a firm consideration of $6,375,000, paid through the issue of 4,250,000 common shares of Savaria at a price of $1.50 per share. The purchase price previously announced by a press release was between $7.5 million and $9.6 million.

Acquiring Concord increases the Company's sales, immediately expands its distribution network and greatly improves its outlook. The following table summarizes the transaction's highlights:

Savaria (Before) Concord Savaria (After)
Sales $35 M(i) $27 M + $60 M
in North America No. 5 No. 6 No. 2
% of sales
outside Canada 50%(i) 60% 55%
Specialties Stairlifts, Residential Full range
vertical and and
inclined commercial
platform lifts elevators
network 300 250 (aprox) 450
retailers retailers retailers
Employees 240 150 (aprox) 400
floor space 140,000 170,000 310,000
sq. ft. sq. ft. sq. ft.
Number of issued
and outstanding
shares 22,642,262(ii) 4,250,000(iii) 26,892,262

(i) Savaria's sales and their geographical breakdown take into
account its results for the last four quarters, to which the
approximate sales of Van-Action 2005 were added.
(ii) Number of issued and outstanding shares as at June 30, 2005.
(iii) Number of shares issued as part of the acquisition, which are
subject to a two-year sales restriction, one-third of which
may be freed up in September 2007, 2008 and 2009 respectively.

Savaria's management plans to build upon the following major
- a better use of Concord's capacity through the manufacture of
some parts for Savaria;
- the pooling of purchasing, in order to benefit from more
favourable conditions with suppliers, especially in China;
- the combination of distribution networks, in order to increase
sales of the two companies' respective products;
- the pooling of sales and manufacturing expertise as well as R&D
efforts; and
- the consolidation of certain administrative services.

"We are very proud to conclude this acquisition, which is Savaria's largest ever," said Marcel Bourassa, the Company's Chairman of the Board, President and Chief Executive Officer. "It effectively meets our acquisition criteria, consolidates our positioning in North America, provides us with major synergies and considerably brightens the Company's growth and profit outlook."

Jean-Marie Bourassa, Savaria's Vice-President, Finance and Chief Financial Officer, added: "This acquisition is highly advantageous for Savaria's shareholders from both the operational and the financial standpoint. It immediately increases our sales and distribution network by approximately 70%, while diluting shareholder value by less than 20%. We also benefit from Concord's loss carry-forwards totalling some $20 million, which will have a significant impact on the Company cash flows in the years to come."

"The benefits of this acquisition, whose results will be recognized effective today, will start to materialize in the short term. In fact, we are confident that Concord's business will contribute to improve the Company's profitability as of the fourth quarter of the current fiscal year," concluded Savaria's President.

Forward-Looking Statements

Certain statements in this press release may be forward-looking. Forward-looking statements involve known and unknown risks, uncertainties or other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Savaria Corporation ( is Canada's leader and the second largest accessibility company in North America. The Company designs, manufactures and distributes products, meeting the needs of people with mobility challenges, including stairlifts, vertical and inclined platform lifts and elevators for residential use. Savaria's products, sold through a network of over 400 retailers in North America, generate sales exceeding $60 million. The Company records over 50% of its sales outside Canada and employs close to 400 people.

Concord Elevator Inc., ( designs, manufactures and distributes elevators for residential and commercial use and vertical platform lifts. Established 32 years ago, Concord generates sales of $27 million, operates out of a 170,000-square-foot facility in Brampton, Ontario, and employs over 150 people. Concord's sales, 60% of which come from the United States, rely on a network of over 250 dealers throughout the United States, Canada, Mexico, the Caribbean, South America, Europe, Russia, Asia, Africa, the Middle East and Australia.

Contact Information

  • Savaria Corporation
    Marcel Bourassa
    Chairman, President and Chief Executive Officer
    (450) 681-5655 or 1 800 931-5655