Savaria Corporation
TSX : SIS

Savaria Corporation

June 19, 2008 16:51 ET

Savaria to Acquire a Manufacturer of Accessibility Equipment

LAVAL, QUEBEC--(Marketwire - June 19, 2008) - Savaria Corporation (TSX:SIS) ("Savaria"), the second largest company in the accessibility industry in North America, announces that it has entered into an agreement to acquire Les Escalateurs Atlas (1991) Inc. ("Atlas"), a company involved in the same business segment as Savaria. The closing of this transaction, which is subject to the completion of a satisfactory due diligence review of Atlas and the execution of definitive documentation, is expected to occur on or about July 3, 2008. The transaction will be totally financed by a long-term debt and by the issuance of common shares.

Atlas manufactures and installs vertical and inclined platform lifts in residential and commercial buildings located primarily in the Greater Montreal Area. Atlas has annual revenues of approximately $3.5 million and employs some 20 people at its St-Hyacinthe, Quebec plant.

"The potential synergies between the two companies are very interesting," remarked Marcel Bourassa, Chairman of the Board, President and Chief Executive Officer of Savaria. "Our existing team will be complemented by a solid team of managers and installers, thereby allowing us to provide turnkey installations. With this acquisition, we will be able to perform all the fitting-out work required before installing a platform lift, which represents a major advantage for our customers."

Pierre Saindon, President and co-owner of Atlas along with Remi Saindon, added: "We are delighted to team up with one of the leaders in our industry. Atlas' profitability will definitely be enhanced by the economies of scale and international partnerships that Savaria benefits from. We will also be able to better meet our Greater Montreal Area customers' needs by offering them an expanded selection of accessibility equipment such as stairlifts, elevators and even adapted vehicles and electric scooters."

This proposed acquisition of Atlas, combined with the scheduled July 2008 opening by Savaria of a showroom at its corporate office located at 2724 Etienne-Lenoir Street in Laval, demonstrate Savaria's commitment to provide its customers with a broader line of unparalleled services. Following its acquisition of Atlas, Savaria will have more than 120 employees working in Quebec to serve its customers.

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 Savaria'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 (www.savariaconcord.com) is Canada's leader and the second largest accessibility company in North America. Savaria designs, manufactures and distributes products meeting the needs of people with mobility challenges, consisting principally of 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 55% 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