ComWest Enterprise Corp. announces that it has entered into a definitive agreement to acquire a 100% equity interest in Unisync Group Limited ("Unisync"), Canada's leading designer, manufacturer and distributor of direct sale uniforms, workwear, image apparel and related solutions.
The transaction is valued at approximately $13,000,000, including debt, with existing shareholders of Unisync having the capability to receive a future contingent payment of up to $2,000,000 subject to the award of specific business which Unisync expects to bid on in 2015.
The acquisition will be financed by $1,755,000 of the private equity placement set out below, a $6,000,000 term loan facility provided by a Canadian chartered bank and the balance from surplus working capital of the combined company. The Board of Directors of ComWest has unanimously approved the transaction, which is anticipated to close on or before July 11, 2014.
ComWest's principal business is currently its 90% partnership interest in Peerless Garments LP which was acquired in August 2010. Concurrent with the acquisition of Unisync, it has reached preliminary agreement with its 10% minority limited partner in Peerless to an exercise of the put/call agreement forming part of the Peerless partnership agreement.