BOUCHERVILLE, QC, July 25,
2022 /CNW Telbec/ - Uni-Select Inc. announced
today that it has entered into a definitive agreement to acquire
Maslack Supply Limited and related real properties, expanding its
presence in Ontario.
Family-owned and operated, Maslack was founded in 1959 and has
grown to include 13 locations across northern Ontario, over 200 dedicated employees, and
over C$52 million dollars of revenue
for its fiscal year ended January 31,
2022. Following the transaction, Maslack's core management
will remain in place and will keep leading operations.
"We are very pleased to be announcing the acquisition of
Maslack, the most significant acquisition for Uni-Select since we
began our turnaround in Q2 of 2021. The transaction represents a
meaningful growth avenue for the Canadian Automotive Group and is
evidence of our ability to leverage our solid and improving balance
sheet to make sizeable investments to grow our business," mentioned
Brian McManus, Executive Chair and
Chief Executive Officer, Uni‑Select Inc.
"We are honored to carry on the legacy of the Maslack family and
happy to expand our footprint in Ontario
-- Canada's largest market for automotive aftermarket
products. We look forward to welcoming Maslack's employees to
leverage our combined strengths and maintain our high standards and
quality of operations," added Emilie
Gaudet, President and Chief Operating Officer, Canadian
Automotive Group.
Maslack's owners expressed their confidence in the company's
next chapter: "We are pleased that Uni‑Select, a Canadian company
built on the same entrepreneurial foundations as Maslack, is
acquiring our family business and carrying on the legacy of our
parents in offering excellent service to our customers throughout
Ontario. Uni-Select emerged as the
obvious buyer because of our shared customer-first approach and
appreciation for employees, which are the front line of our
business," shared Betty Jane
Marks and Judy Roy, the
daughters of Maslack's founder, John
Maslack.
Uni-Select plans to fund the transaction using amounts available
under its credit facility and the transaction is expected to be
immediately accretive to Uni-Select's net earnings. The
transaction is expected to close on or about August 2, 2022, subject to customary closing
conditions. Uni-Select does not expect to make any further
announcement regarding the transaction.
ABOUT UNI-SELECT
With over 5,000 employees in Canada, the U.S. and the U.K., Uni-Select is a
leader in the distribution of automotive refinish and industrial
coatings and related products in North
America, as well as a leader in the automotive aftermarket
parts business in Canada and in
the U.K. Uni-Select is headquartered in Boucherville, Québec, Canada, and its shares are traded on the
Toronto Stock Exchange under the symbol UNS.
In Canada, Uni-Select supports
over 16,000 automotive repair and collision repair shops and more
than 4,000 shops through its automotive repair/installer shop
banners and automotive refinish banners. Its national network
includes over 1,000 independent customer locations and more than 80
company-operated stores, many of which operate under the Uni-Select
BUMPER TO BUMPER®, AUTO PARTS PLUS® and
FINISHMASTER® store banner programs.
In the United States,
Uni-Select, through its wholly-owned subsidiary FinishMaster, Inc.,
operates a national network of over 145 automotive refinish
company-operated stores under the FINISHMASTER® banner,
which supports over 30,000 customers annually.
In the U.K., Uni-Select, through GSF Car Parts, is a major
distributor of automotive parts supporting over 20,000 customer
accounts with a network of over 180 company-operated stores.
www.uniselect.com
CAUTION REGARDING FORWARD-LOOKING
INFORMATION
Certain statements made in this press release are
forward-looking information within the meaning of Canadian
securities laws. All such forward-looking information is made and
disclosed in reliance upon the "safe harbour" provisions of
applicable Canadian securities laws.
Forward-looking information includes all information and
statements regarding Uni-Select's intentions, plans, expectations,
beliefs, objectives, future performance, and strategy, as well as
any other information or statements that relate to future events or
circumstances and which do not directly and exclusively relate to
historical facts. Forward-looking statements often, but not always,
use words such as "believe", "estimate", "expect", "intend",
"anticipate", "foresee", "plan", "predict", "project", "aim",
"seek", "strive", "potential", "continue", "target", "may",
"might", "could", "should", and similar expressions and variations
thereof. In addition, statements with respect to management
expectations in terms of earnings accretion constitute
forward-looking information and financial outlook within the
meaning of Canadian securities laws.
Forward-looking information is based on Uni-Select's perception
of historic trends, current conditions and expected future
developments, as well as other assumptions, both general and
specific, that Uni-Select believes are appropriate in the
circumstances. Such information is, by its very nature, subject to
inherent risks and uncertainties, many of which are beyond the
control of Uni-Select, and which give rise to the possibility that
actual results could differ materially from Uni-Select's
expectations expressed in, or implied by, such forward-looking
information. Uni-Select cannot guarantee that any forward-looking
information will materialize, and we caution readers against
relying on any forward-looking information. These risk and
uncertainties include, but are not restricted to: risks associated
with the timing of the closing or the failure to close the Maslack
transaction, with the COVID-19 pandemic, reduced demand for our
products, disruptions of our supplier relationships or of our
suppliers' operations or supplier consolidation, disruption of our
customer relationships, competition in the industries in which we
do business, security breaches, information security malfunctions
or integration issues, the demand for e-commerce and failure to
provide adequate e-commerce solutions, retention of employees,
labor costs, union activities and labor and employment laws,
failure to realize benefits of acquisitions and other strategic
transactions, product liability claims, credit risk, loss of right
to operate at key locations, failure to implement business
initiatives, failure to maintain effective internal controls,
macro-economic conditions such as unemployment, inflation, changes
in tax policies and uncertain credit markets, operations in foreign
jurisdictions, inability to service our debt or fulfill financial
covenants, litigation, legislation or government regulation or
policies, compliance with environmental laws and regulations,
compliance with privacy laws, global climate change, changes in
accounting standards, share price fluctuations, corporate social
responsibility and reputation and activist investors as well as
other risks identified or incorporated by reference in Uni-Select's
MD&A for the year ended December 31,
2021 and in other documents that we make public, including
our filings with the Canadian Securities Administrators (on SEDAR
at www.sedar.com).
Unless otherwise stated, the forward-looking information
contained in this press release is made as of the date hereof and
Uni-Select disclaims any intention or obligation to publicly update
or revise any forward-looking information, whether as a result of
new information, future events or otherwise, except as required by
applicable law. While we believe that our assumptions on which the
forward-looking information is based were reasonable as at the date
of this press release, readers are cautioned not to place undue
reliance on the forward-looking information.
Furthermore, readers are reminded that forward-looking
information is presented for the sole purpose of assisting
investors and others in understanding Uni-Select's expected
financial results, as well as our objectives, strategic priorities
and business outlook and our anticipated operating environment.
Readers are cautioned that such information may not be appropriate
for other purposes and should not be relied upon as necessarily
being indicative future financial results.
Further information on the risks that could cause our actual
results to differ significantly from our current expectations may
be found in the section titled "Risk Management" of our MD&A,
for the year ended December 31, 2021,
which is incorporated by reference in this cautionary statement. We
also caution readers that the above-mentioned risks and the risks
disclosed in our MD&A for the year ended December 31, 2021, and other documents and
filings are not the only ones that could affect us. Additional
risks and uncertainties not currently known to us or that we
currently deem to be immaterial could also have a material adverse
effect on our business, operating results, cash flows and financial
condition.
SOURCE Uni-Select Inc.