United Protection Security Group Inc.
TSX VENTURE : UZZ

United Protection Security Group Inc.

November 13, 2008 13:05 ET

United Closes Second Acquisition for 2008

- Accretive acquisition strengthens presence in British Columbia - $5,000,000 in revenue and $350,000 of EBITDA(1) added per annum

EDMONTON, ALBERTA--(Marketwire - Nov. 13, 2008) - S. Jorstad, Chairman, President and Chief Executive Officer of United Protection Security Group Inc. ("UPSG" or "the Company"), a Canadian based security protection company, trading on the TSX Venture Exchange under the symbol (TSX VENTURE:UZZ), announces that further to the news release dated July 8, 2008, UPSG is pleased to announce the closing of the acquisition of the man-guard business of Kanaf Security Group Inc. ("Kanaf") of British Columbia. The acquisition is effective October 31, 2008.

The purchase price for the man-guard business of Kanaf was $1,377,000. The total purchase was funded by $500,000 cash on closing, $200,000 payable on or before April 30, 2009, and a vendor financing of $677,000 repayable over three years. The vendor has signed a three year non-compete agreement.

The acquisition is expected to generate revenue in excess of $5,000,000 per annum and EBITDA in excess of $350,000 per year. Kanaf has provided man-guard service in the lower mainland of B.C by the deployment of proprietary state of the art integrated GPS software combined with readily available GPS smart-phones, which allow the user to confirm on-site security service delivery in real-time. UPSG is currently in negotiations with the vendors to enter into a master licensing agreement to use the GPS Software with the intention of deploying the technology to the rest of its customer base.

"I am pleased with the results of our acquisition strategy and the completion of the Kanaf transaction, marking a second successful acquisition for us in 2008," noted Sig Jorstad. I am confident that this accretive acquisition will complement our strong organic growth profile and make UPSG an even more prominent growth company in its markets."

United Protection Security Group Inc. is fully committed to its strategy of investing in accretive acquisitions, and achieving organic growth through continuous investment in strong management.

(1) EBITDA = earnings before interest, taxes, depreciation, amortization.

About United Protection Security Group Inc.

United Protection Security Group Inc. is an established security protection company, focused on high impact, high visibility, and high risk security situations, coupled with one of the broadest ranges of traditional private security services in the industry.

Delivering 21st Century Solutions to centuries old problems through a network of 'Elite Private Protection Professionals'.

Pro - Active and Progressive Management has moved the company into the ranks of one of the most dynamic security companies in Western Canada. With a strong foundation and a dedicated professional management team, we are moving forward in our development strategy.

United Protection Security Group Inc. is committed to providing its clients with a "superior quality service" at a competitive price. It is further committed to providing its employees and associates with the assistance, support, and opportunity to maximize their individual potential for excellence, peak performance and personal growth. It is the Company's policy and highest priority to protect the health and welfare of all its clients and employees and their respective property.

Stock Awareness Activities:

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Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks related to business development and retention, and risks related to the current economic and credit conditons. As a result, actual results may vary materially from those described in the forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Spinnaker Capital Market Inc.
    Ali Mahdavi
    (416) 402-7300
    or
    Spinnaker Capital Market Inc.
    Kevin O'Conner
    (416) 402-7300
    or
    United Protection Security Group Inc.
    Corporate Office
    (780) 465-8101 or Toll Free 1-877-465-1708
    Email: iruzz@unitedprotection.com
    Website: www.unitedprotection.com