Commercial Takes Canglobal and BrightCapital for $4 Million
Commercial Solutions has completed the acquisition of 100% of the issued and outstanding shares of Canglobal Products Ltd. and BrightCapital Technology Ltd. for $4,000,000. Canglobal is a distributor of oilfield instrumentation products, based in Nisku, Alberta. Canglobal has fourteen employees and have generated trailing twelve-month sales to June 30, 2007 of $3,400,000. During the recent Western Canadian drilling industry correction, overall sales have continued to grow as Canglobal has sourced new customers for its unique instrumentation product lines.
The purchase price consists of $1,400,000 in cash, $1,400,000 in notes payable and $1,200,000 in Commercial shares. The purchase price also incorporates certain purchase price adjustments assuming targeted future earnings of Canglobal are achieved.
Commercial President and CEO, Jim Barker, said, "Canglobal's success is due to a group of experienced and knowledgeable employees who will now have access to Commercial's 40 locations as additional venues for their products. Their unique product sourcing abilities will provide immediate synergies for Commercial."
Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 41 Services Centres and approximately 400 employees located across Canada. Commercial offers more than 160,000 items critical to maintenance repair and operations (MRO) and original equipment manufacturer (OEM) customers. The Company represents 450 leading manufacturers and serves over 11,000 customer accounts within a broad cross-section of industries, including oil and gas, forestry, food processing, chemical processing, mining and aggregate, utilities, agriculture and construction. Commercial trades under the symbol "CSA" on the Toronto Stock Exchange.
- Commercial Takes Canglobal and BrightCapital for $4 Million (Sep 04)