Semcan Inc. (TSX VENTURE: STT)("SEMCAN") announces that it has completed the previously announced (see Semcan press release of February 5, 2007) acquisition of all of the shares of Ken-Co Industries Inc. for a purchase price of $7,500,000, in exchange for a cash payment of $5,500,000 and $2,000,000 principal amount of secured promissory note. Larry Minaker will continue as President of Ken-Co.
Ken-Co Industries Ltd. is an automotive parts manufacturer and distributor.
Ken-Co's consolidated gross revenue, based on Ken-Co's unaudited financial information, for the six months ended December 31, 2006 was $5,350,828.00. Based on Ken-Co's December 31, 2006 unaudited financial information, on completion of the acquisition Ken-Co will have total operating assets of $4,304,337 less liabilities of $2,959,899. Included in the acquisition of Ken-Co is real estate having an appraised value of $2,915,000 less mortgages of $2,250,000. The working capital projected on closing for Ken-Co. is $1,344,438.
Management of SEMCAN believes that upon completion of the acquisitions of both the Forward Precision Tools business (see SEMCAN press releases of February 5, 2007 and March 2, 2007) and Ken-Co, approximately 45.16% of the revenues of SEMCAN over the next twelve months will come from Ken-Co.
About SEMCAN
SEMCAN is a growth company expanding through acquisitions within the Industrial and Distribution sectors. SEMCAN seeks out well managed profitable companies that meet certain financial parameters. SEMCAN works with existing management to grow the acquired companies both organically and through further complementary acquisitions. SEMCAN provides the central finance and administrative functions, allowing operational management to remain focused on bottom line profitability thereby increasing shareholder value.
This press release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including the risks associated with operations and sales;; and risks associated with margins, suppliers and customers and risks associated with foreign exchange fluctuations, among others. These forward-looking statements represent the Company's judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
Contacts: Semcan Inc. Phil Jamieson Chairman (905) 564-8665
SOURCE: Semcan Inc.