Horizon North Logistics Inc. (“Horizon North” or the “Corporation”) (TSX: HNL.TO) announced today that the Corporation has completed its previously announced acquisition (the “Acquisition”) of NRB Inc. (“NRB”) and provided an update on hospitality projects and accessibility initiatives within its Modular Solutions business.
Acquisition of NRB
The previously-announced Acquisition of NRB, a full-service modular construction provider based in Grimsby, Ontario, has been completed. “The integration of these two companies leverages the stability of our balance sheet to immediately provide Horizon North with manufacturing capacity in Southern Ontario, a significant next step in our pan-Canadian growth strategy,” says Rod Graham, President and Chief Executive Officer of Horizon North. “Like our locations in Kamloops, Aldergrove and Calgary, the NRB facility is strategically located near major transportation routes and a diverse labour pool. That location, coupled with an expanded product portfolio and the unified expertise of our two teams, should have us well-situated to provide industry-leading, turn-key modular solutions across the country.”
“The expansion of our product portfolio is a key aspect to this integration and Horizon North believes it is well-positioned to capture multiple end markets in modular construction,” says Joseph Kiss, President of Horizon North’s Modular Solutions business. “Horizon North’s expertise in wood-frame modular structures will expand east, providing solutions for affordable social, student, senior and First Nations housing, in addition to hotels, commercial space and single and multi-family homes. At the same time, NRB’s expertise in steel-frame, non-combustible modular structures will expand west, including facilities for health care, recreation, and education purposes, as well as retail, hospitality and utilities structures.”
“2019 marks our fortieth year in business and we look forward to the next chapter of NRB’s journey with Horizon North,” say Bob and Craig McNeil of NRB. “This integration will expand our capabilities and expertise and introduce the brand to customers across Canada, meaning continued employment for those who are part of our NRB family. For the past 40 years, we have been guided by values of teamwork, professionalism, innovation and integrity, and those commitments to customers will not change.”
Modular Hospitality Projects and Accessibility Initiatives
Horizon North’s Modular Solutions business has continued development of its hospitality offerings. A design-build project for Hostelling International Canada in Jasper, Alberta is expected to be completed in May 2019. The Corporation was also recently awarded a design-build project from a repeat client for a five-storey, select service modular hotel in Prince George, British Columbia, with anticipated completion in Q4 2019. The Corporation has also committed to the design and construction of a 119-room, five-storey modular Marriott Fairfield Inn & Suites in Kitimat, British Columbia, with anticipated completion in late 2019. This hotel will be located on the Corporation’s Crossroads land parcel in Kitimat, which will support development in the region, including the LNG Canada project.
“Continued growth of our Modular Solutions business will be predicated on diversity in our offerings and repeat business from satisfied clients. These projects are important for our portfolio,” says Rod Graham, President and Chief Executive Officer of Horizon North. “In particular, the opportunity to expand our hospitality offering to Marriott International’s modular hotel development program is key to positioning Horizon North as a leading provider of modular solutions which can reduce build times and may generate a quicker return on investment for hoteliers.”
Horizon North is also working with the Rick Hansen Foundation (the “Foundation”) to improve the accessibility of the Corporation’s modular built projects. The Foundation works to improve the accessibility of commercial, institutional and multi-unit residential buildings in Canada for those struggling with mobility and other issues. Horizon North is developing an Accessibility Design Criteria Manual with support from the Foundation that is expected to optimize the Corporation’s consideration of building accessibility in its design process and achieve Rick Hansen Foundation Accessibility Certification™ (the “Certification”) on targeted Horizon North projects across Canada.
“Accessibility is an important consideration in construction and Horizon North is committed to expanding our accessibility solutions offerings and expertise,” says Joseph Kiss, President of Horizon North’s Modular Solutions division. “Through this Certification, we look forward to our future modular projects offering the necessary requirements for the one in seven Canadian adults who are struggling with mobility, hearing or vision disabilities to enjoy the spaces we create.”
“Congratulations to Horizon North for their commitment in utilizing our Certification to achieve a level of excellence in accessibility and inclusion in their modular projects across Canada,” says Rick Hansen, Founder of the Rick Hansen Foundation. “When we move beyond building codes and apply the principles of Universal Design, we are creating communities and spaces that are inclusive to all. As more organizations like Horizon North take this kind of leadership, we normalize accessibility in the built environment.”
About Horizon North
Horizon North is a publicly listed corporation (TSX: HNL.TO) providing a full range of industrial, commercial, and residential products and services. Our Modular Solutions business integrates modern design concepts and technology with state of the art, off-site manufacturing processes; producing high quality building solutions for commercial and residential offerings including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. Our Industrial Services business supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers in numerous sectors, anywhere in Canada.
NRB is a successful, customer-driven manufacturer of quality modular buildings and supplier of related products and services. NRB has served the needs of the institutional, industrial, retail and commercial markets since 1979. From innovative design engineering through to off-site fabrication in our controlled environment to final on-site completion, NRB builds modular buildings of impressive design, finish and performance. NRB’s projects range in size and scope, and include applications in the educational, retail, commercial, health care, industrial and institutional construction markets.
Additional information related to Horizon North, including the Corporation’s annual information form, press releases, financial statements and MD&A are available on SEDAR at www.sedar.com
For further information, please contact Rod Graham, President and Chief Executive Officer or Scott Matson, Senior Vice President Finance and Chief Financial Officer, 900, 240 – 4th Avenue S.W., Calgary, Alberta T2P 4H4; Telephone (403) 517 – 4654, Fax (403) 517 – 4678; website: www.horizonnorth.ca
This news release contains certain statements or disclosures relating to Horizon North that are based on the expectations of its management as well as assumptions made by and information currently available to Horizon North which may constitute forward-looking statements or information (“forward-looking statements”) under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Horizon North anticipates or expects may, could or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words “anticipate”, “believe”, “can”, “continue”, ”expect”, “forward”, “future”, “may”, “opportunity”, “should”, “will” and similar expressions. In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the following: potential benefits and effects of the Acquisition in respect of the business of Horizon North and its subsidiaries; the specifications, timing, completion and impact of Modular Solutions projects; the benefits of Marriott International’s modular hotel development program to the Corporation and hoteliers; the benefits of modular solutions; the growth of the Corporation’s Modular Solutions business; the Corporation’s Accessibility Design Criteria Manual; and the receipt by the Corporation of and the benefits of Certification.
The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of Horizon North including, without limitation: the ability of the Corporation to realize benefits from the Acquisition; that Horizon North will continue to conduct its operations in a manner consistent with past operations; the general continuance of current or, where applicable, assumed industry conditions; availability of debt and/or equity sources to fund Horizon North’s capital and operating requirements as needed; and certain cost assumptions in respect of Horizon North’s projects and business.
Horizon North believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation: general economic, market and business conditions; the Corporation’s future capital requirements; execution risk in connection with the integration of NRB’s business with that of the Corporation; Modular Solutions projects may not be completed in the timelines anticipated, in the manner anticipated or at all; the delivery of and demand for the Corporation’s products and services may not have the results currently anticipated by Horizon North; reliance on industry partners; unforeseen legal or regulatory developments; and certain other risks detailed from time to time in Horizon North’s public disclosure documents including, without limitation, those risks identified in this news release, and in Horizon North’s annual information form, copies of which are available on Horizon North’s SEDAR profile at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive and are cautioned not to place undue reliance on these forward-looking statements.
The forward-looking statements contained in this news release are made as of the date hereof and the Corporation undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.