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Stuart Olson Completes Acquisition of Tartan Canada Corporation

November 06, 2018

CALGARY, Nov. 6, 2018 /CNW/ - Stuart Olson Inc. (TSX: SOX, SOX.DB.A) ("Stuart Olson" or the "Company") today announced it has successfully acquired all of the outstanding shares of Tartan Canada Corporation ("Tartan") for a purchase price of approximately $12 million, which is subject to customary  holdbacks and adjustments.

Founded in 1953, Tartan is a privately held Western based mechanical maintenance, repairs and operations (MRO) company headquartered in Calgary. Tartan has approximately 400 employees and has both union and non-union capabilities. For the twelve months ended September 30, 2018, Tartan is estimated to have generated revenue of approximately $70 million, adjusted EBITDA of approximately $3.5 million and have a backlog of approximately $50 million. The backlog primarily consists of contracted MRO and plant turnarounds. 

Tartan will be fully integrated within Stuart Olson's Industrial Group. Bob Myles, Stuart Olson's Industrial Group's Chief Operating Officer, who was previously Tartan's President & CEO up until January 2016, will lead the process of integrating Tartan into the Company.

"This acquisition represents an important milestone for our Industrial Group to further its abilities as an integrated solutions provider. Our growth strategies are centered on building both scope and scale by targeting the addition of complementary trade services. Tartan's mechanical MRO capabilities will expand our Industrial Group's access to a larger share of the industrial market both in terms of mechanical and general contracting opportunities," said David LeMay, President and CEO of Stuart Olson.     

"Tartan is very excited to be part of the Stuart Olson family and now have access to its large industrial customer base. Tartan brings a strong reputation of providing safe, high quality, cost effective and on time heavy industrial services," said Doug Lautermilch, President & CEO of Tartan.

The Company expects this transaction to be immediately accretive to Stuart Olson and the purchase price due at closing, will be paid in cash and financed through the Company's existing revolving credit facility. The Company will provide further commentary on this acquisition in its third quarter results conference call on November 7, 2018 scheduled for 9:30 am ET / 7:30 am MT.

ABOUT STUART OLSON INC.

Stuart Olson Inc. provides general contracting and electrical building systems contracting in the public and private construction markets as well as general contracting, electrical, mechanical and specialty trades, such as insulation, cladding and asbestos abatement, in the industrial construction and services market. The Company operates office locations and projects throughout Western Canada, Ontario and the territories. Stuart Olson was recognized as one of Alberta's Top 70 Employers in 2018 for the second consecutive year. Stuart Olson's common shares and convertible debentures are listed on the Toronto Stock Exchange under the symbols "SOX" and "SOX.DB.A", respectively. www.stuartolson.com

FORWARD-LOOKING INFORMATION

This press release contains certain statements that may constitute forward-looking information within the meaning of applicable securities laws. Often, but not always, forward-looking information can be identified by the use of such words as "may", "will", "expect", "believe", "plan", "intend", "estimate", "outlook", "forecast", "should", "anticipate", "seek", "continue", "see", "project", "predict", "propose", "targeting", "potential", "could", "might", "grow", "momentum" and other similar terminology, including statements concerning possible or assumed future results. Forward-looking information is based on management's reasonable assumptions, analysis and estimates in respect of its experience and perception of trends, current economic conditions, government policies and expected developments, as well as other material factors that it considers to be relevant at the time of making such statements.

The forward-looking information in this press release is included solely for the purpose of assisting investors in understanding the Company's financial position and the results of its operations as at the date hereof. By its nature, forward-looking information involves known and unknown risks and uncertainties, which give rise to the possibility that management's assumptions, analysis and estimates will be incorrect and that the Company's anticipated results will not be achieved. Although the Company believes that the statements with respect to forward-looking information are reasonable and current, such statements should not be interpreted as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. Forward-looking information is necessarily subject to a number of factors that may cause actual results to differ materially from those results implied by the expectations suggested by such information. Those factors include, without limitation, the risks and uncertainties described in the Company's Annual Information Form filed with the securities regulatory authorities in Canada under the Company's profile at www.sedar.com. Readers are encouraged to consider the foregoing risks and other factors carefully when evaluating the forward-looking information and are cautioned not to place undue reliance upon such information when making investment decisions.

The forward-looking information in this press release is current to the date hereof, and is subject to change following such date. While the Company may elect to do so, unless required by applicable law, it undertakes no obligation to update this information to reflect new information or circumstances at any particular time.

SOURCE Stuart Olson Inc.

David LeMay, President and Chief Executive Officer, Stuart Olson Inc., (403) 685-7777, Email: inquiries@stuartolson.com; Daryl Sands, Executive Vice President and Chief Financial Officer, Stuart Olson Inc., (403) 685-7777, Email: inquiries@stuartolson.com