Horizon North Logistics Inc. (“Horizon North” or the “Corporation”) (TSX: HNL.TO) announced today that the Corporation has successfully closed a purchase of the custom manufacturing business (the “Business”) of C&V Portable Accommodations Ltd. (“C&V”) and appointed Luke Harrison as Vice President, Business Development, Modular Solutions.
Purchase of Assets of C&V Custom Modular Manufacturing
Today, Horizon North acquired the assets comprising the custom modular manufacturing division of C&V. The $4.0 million all-cash total purchase price includes an existing leasehold on 86,000 square feet of manufacturing space in Rocky View County, Alberta, as well as employees, equipment, working capital, and certain intangible assets (the “Purchased Assets”). Specifically excluded from the Purchased Assets were C&V’s existing 330 wellsite rental units and assets related to the rental business, as well as the brand name of C&V.
The manufacturing facility and the assets will be used to increase capacity for the Corporation’s Modular Solutions division and to gain access to desirable markets. “The purchase of this Alberta-based business is an ideal fit for the growth strategy of Horizon North’s Modular Solutions division, with a facility well-equipped to produce a high volume of commercial product, a skilled workforce already in place, and a strong baseline of existing business,” says Rod Graham, President and Chief Executive Officer of Horizon North. “With a strategic location just east of Calgary, the addition of this facility will allow us to leverage reduced transportation costs to expose ourselves to modular construction opportunities in Alberta and Saskatchewan.”
“The solutions we are providing from our manufacturing facilities in Kamloops and Aldergrove, British Columbia have been at the center of the growth of Horizon North Modular Solutions to date,” adds Joseph Kiss, President, Modular Solutions for Horizon North. “With this purchase, we are taking the next step in our vision for pan-Canadian growth, bringing east our diverse offerings which include multi-family condominiums and apartments, hotels, student and senior housing, permanent and temporary affordable housing, commercial infrastructure, and Karoleena residential homes. The Calgary market is business-friendly with a diverse labour pool, including a strong workforce of men and women in skilled trades – an excellent fit for Horizon North.”
In concert with the expansion of the Modular Solutions business, and further to the recent appointments of Howard Phillips as Vice President, Projects and Sloan Challand as Vice President, Sales, we are pleased to announce the completion of our Modular Solutions executive team with the appointment of Luke Harrison as Vice President, Business Development.
In his role, Luke will be responsible for growing the Modular Solutions portfolio with innovative developmental approaches specifically focused on government and not-for-profit social housing, including First Nations, senior, student and affordable housing initiatives. Luke comes to Horizon North from the role of Director and Chief Executive Officer of the Vancouver Affordable Housing Agency (VAHA), where he led the organization’s significant progress on delivering affordable housing options to the people of Vancouver. He leaves VAHA with a large portfolio of housing units either complete or in various stages of development, including more than 600 temporary modular units.
Prior to his executive role, Luke also served as Senior Planner for VAHA and in several real estate development roles for businesses in the Greater Vancouver area. Luke holds a Master of Business Administration from the University of British Columbia and a Bachelor of Business Administration in Finance, Strategy and Economics from the British Columbia Institute of Technology.
“From the National Housing Strategy to the funding commitments of the Government of British Columbia and BC Housing, the attention being paid to social housing in Canada is significant,” says Rod Graham. “Adding Luke and his unique skills will quickly grow our strength in this important sector, one which we believe is an ideal fit for the substantially reduced construction timeframes of modular builds. His experience will be critical in helping Horizon North export our successful modular housing efforts in British Columbia to new markets where our made-in-Canada solution can assist governments and not-for-profit organizations who are taking on the endemic national issue of delivering homes for all Canadians.”
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 division 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 division 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.
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 – 4 Ave. 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 “will”, “vision”, “believe” and similar expressions. In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the following: the expected use and benefits of the Purchase; the Corporation’s growth strategy; Mr. Harrison’s responsibilities and the benefits of his retention by the Corporation; and the Corporation’s modular solutions division.
The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of Horizon North including, without limitation: 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.
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 delivery of and demand for the Corporation’s services and products may not have the results currently anticipated by Horizon North; reliance on industry partners; 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.