TORONTO, Oct. 11 /PRNewswire-FirstCall/ -- Samuel Manu-Tech Inc. (SMT-TSX) today announced that its Samuel Strapping Systems Group ("Samuel") has acquired the assets and plastic strapping, graphic arts and industrial distribution business operations of Gerrard-Ovalstrapping, Ovalstrapping Inc. and Plastex Extruders in North America. This concludes the transaction that was first announced in Samuel's September 11, 2006 press release regarding the signing of a Letter of Intent.
Gerrard-Ovalstrapping and its associated group of companies is one of the leading packaging organizations in North America. Samuel will operate the company under the name Gerrard-Ovalstrapping.
Annual sales related to the acquired assets approximated USD $45 million in 2005. Management expects this acquisition to be accretive to earnings. Funding for the acquisition came from Samuel Manu-Tech's existing revolving credit facilities.
This is one of several 'growth related' announcements of Samuel Manu-Tech in 2006. "We are extremely pleased to welcome Gerard-Ovalstrapping, Ovalstrapping Inc. and Plastex Extruders and their dedicated employees to our Packaging businesses," announced SMT's Chief Executive Officer, Mark Samuel. "This acquisition is a vital step in continuing to build Samuel as a leader in the manufacturing and supply of industrial packaging products and systems," he added.
The pulp and paper finishing businesses of Gerrard-Ovalstrapping and Ovalstrapping Inc. are not included in the transaction. The Ovalstrapping family of companies will continue to independently supply pulp and paper finishing systems to customers in Canada, the US and around the world under the Ovalstrapping Brand.
Samuel Manu-Tech Inc. is a leading North American industrial products and technology company producing a wide range of steel, plastic and related industrial products and services from locations in Canada, the United States and Mexico.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
