Jul 27 2004
British Vita PLC is pleased to announce that it has acquired the outstanding 50% shareholding of its associated Canadian group of companies, Vitafoam Products Canada Limited, Engineered Foam Products Limited and subsidiaries (“Vitafoam Canada”), effective 26 July 2004.
Vitafoam Canada manufactures and sells flexible polyurethane foam for a wide range of comfort and industrial applications from multiple locations throughout Canada. British Vita has owned 50% of the business since 1973, alongside its partners, the Himel family. In addition to acquiring the Himel family holdings in Vitafoam Canada, British Vita has also acquired their holding of 100% of the issued share capital of Tormay Management Corp and 641703 Ontario Limited which supply ancillary services to Vitafoam Canada.
The aggregate consideration for the acquisition was Can$36.6 million (£15.1 million) which was financed from existing cash and debt facilities. For the respective 2003 financial years, the value of the net assets acquired was Can$13.1million (£5.4 million) and the profit before tax attributable to the net assets acquired was Can$5.0 million (£2.1 million).
Commenting on the acquisition, British Vita Chief Executive, David Campbell, said: “Having worked closely with our partners for over 30 years to build a successful foam business in Canada, this acquisition to a full 100% holding represents a strategic geographic extension of Vita’s global leadership in Cellular Polymers. This is an opportunity in North America to successfully build on our core divisional strengths and enhance shareholder value.”
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