Strongco Corporation

Strongco Corporation

March 05, 2012 14:21 ET

Strongco Announces Alberta Expansion

New Fort McMurray Branch to Carry Volvo Construction Equipment and Manitowoc Crane Group Lines

MISSISSAUGA, ONTARIO--(Marketwire - March 5, 2012) - Strongco Corporation (TSX:SQP) today announced it has entered into a contract to purchase six acres of land in Fort McMurray, Alberta to build a new branch to further expand its presence in the northern part of the province.

Construction is planned to begin on a 23,000 square foot facility in August 2012, with completion expected in February 2013. Finalization of the land purchase is subject to normal due diligence. The new facility will carry the full line of products from Volvo Construction Equipment and complementary brands as well as Manitowoc, National and Grove crane products.

"This is the second step of our strategy to strengthen Strongco's presence in Alberta and to position the company to build market share in the oil and gas sector," said Bob Dryburgh, President and Chief Executive Officer of Strongco. The first step was construction of a new branch in Edmonton, announced in 2011. Strongco will relocate its regional Volvo operations into that new facility this month and begin the upgrade of the existing Edmonton crane facility.

"The continuing strength of this market, combined with major capital commitments for further expansion of the energy sector, give us the confidence to put in place the infrastructure to support our planned growth in this region," Mr. Dryburgh added.

The new Fort McMurray branch will involve a total capital cost of $16.5 million, most of which will be financed through a mortgage facility arranged with Strongco's current bank.

About Strongco Corporation

Strongco Corporation is one of Canada's largest multiline mobile equipment dealers and operates in the North East United States, through Chadwick-BaRoss, Inc. Strongco sells, rents and services equipment used in sectors such as construction, infrastructure, mining, oil and gas, utilities, municipalities, waste management and forestry. Strongco has approximately 640 employees servicing customers from 25 branches in Canada and 5 in the United States. Strongco represents leading equipment manufacturers with globally recognized brands, including Volvo Construction Equipment, Case Construction, Manitowoc Crane, National, Grove, Terex Cedarapids, Terex Finlay, Ponsse, Fassi, Allied Construction, Taylor, ESCO, Dressta, Sennebogen, Jekko, Takeuchi, Doppstadt, Link-Belt and Kawasaki. Strongco is listed on the Toronto Stock Exchange under the symbol SQP.

Forward-Looking Statements

This news release contains "forward-looking" statements within the meaning of applicable securities legislation which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Strongco or industry results, to be materially different from any future results, events, expectations, performance or achievements expressed or implied by such forward-looking statements. All such forward-looking statements are made pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. Forward-looking statements typically contain words or phrases such as "may", "outlook", "objective", "intend", "estimate", "anticipate", "should", "could", "would", "will", "expect", "believe", "plan" and other similar terminology suggesting future outcomes or events.

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