Tuckamore Capital Management Inc.

Tuckamore Capital Management Inc.

July 27, 2011 12:03 ET

Tuckamore to Sell Interest in Baird MacGregor Insurance Brokers LP and Hargraft Schofield LP

TORONTO, ONTARIO--(Marketwire - July 27, 2011) -


Tuckamore Capital Management Inc. ("Tuckamore") (TSX:TX)(TSX:TX.DB.B)(TSX:TX.DB.C) announced today that its indirect wholly-owned subsidiary, Newport Partners Holdings LP, has entered into a purchase agreement with Laurio Management Corp. ("Laurio") and 2292773 Ontario Inc. for the sale of Tuckamore's 77.5% indirect interest in Baird MacGregor Insurance Brokers LP ("Baird") and Tuckamore's 100% indirect interest in Hargraft Schofield LP ("Hargraft") to Laurio and the sale of Tuckamore's 100% interest in the general partners of Baird and Hargraft for an aggregate purchase price of $11.25 million. Laurio is currently the 22.5% minority partner in Baird. The sale transactions are expected to close on or about July 28, 2011, and are subject to customary terms and conditions.

Approximately $5.5 million from Tuckamore's net proceeds from the sale are expected to be deposited into an escrow account in accordance with the terms of its senior credit facility and the terms of the secured and unsecured indentures to be held and used for specified acquisition purposes and specified working capital purposes as described thereunder while the balance will be applied to the debt outstanding under its senior credit facility.

About Tuckamore

Tuckamore (formerly Newport Inc.) is a publicly traded company, which invests in successful Canadian private businesses. Tuckamore, after completion of this transaction, will have $405 million invested in 10 businesses representing a diverse cross-section of the Canadian economy.

Forward-Looking Statements

Certain information included in this news release may constitute forward-looking information within the meaning of securities laws. Such forward-looking information reflects management's current beliefs and is based on information currently available to management of Tuckamore. Forward-looking information involves significant risks and uncertainties (both general and specific) and the risk that the expectations represented in such forward-looking statements will not be achieved. In addition, in evaluating this information, investors should specifically consider various factors, including the risks outlined in the annual information form of Tuckamore dated March 30, 2011 and Tuckamore's other public disclosure documents filed on SEDAR at www.sedar.com, which may cause actual events or results to differ materially from any forward-looking statement. In formulating forward-looking information herein, management has assumed that business and economic conditions affecting Tuckamore and its operating partnerships will continue substantially in the ordinary course, including without limitation, with respect to general levels of economic activity. Although the forward-looking information is based on what management of Tuckamore and the operating partnerships consider to be reasonable assumptions based on information currently available to them, there can be no assurance that actual events or results will be consistent with this forward-looking information, and management's assumptions may prove to be incorrect. This forward-looking information is made as of the date of this news release, and Tuckamore does not assume any obligation to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking information.

Contact Information

  • Tuckamore Capital Management Inc.
    Keith Halbert
    Chief Financial Officer