Savaria Announces Acquisition of H.E.S. Elevator Services Inc.

LAVAL, Quebec, April 12, 2018 (GLOBE NEWSWIRE) -- Savaria Corporation (TSX:SIS) (“Savaria”), one of North America’s leaders in the accessibility industry, today announced that it has acquired all of the assets of H.E.S. Elevator Services Inc. (“H.E.S.”), an elevator dealer based in Denver, Colorado, for a purchase price of approximately US $1.1 million (CDN $1.4 million). H.E.S. has been a Savaria dealer for 5 years and is expected to deliver net sales of approximately US $2.8 million (CDN $3.5 million) and earnings before interest, income taxes, depreciation and amortization (EBITDA) of approximately US $300,000 (CDN $378,000) annually.

“Our two companies have prospered from a great relationship during the past 5 years and we look forward to building on this foundation in the future. This latest transaction complements our asset purchase of luxury elevator maker Visilift in Colorado, and will help strengthen our direct sales and installation presence in a market featuring beautiful custom mountain homes. We are fortunate that the principals have agreed to remain involved in management roles to ensure a smooth transition for Savaria and the staff at H.E.S.,” said Marcel Bourassa, Chief Executive Officer and President of Savaria.

“We are very excited about this outcome and proud to contribute to the success of this leader in the industry.  We focus on installing and servicing our products with the utmost attention to our customers’ needs.  We feel our management team and field technicians are very qualified to grow Savaria’s presence in the Colorado market and we are looking forward to the journey,” said Kim Buckley, H.E.S.’ President.

H.E.S. sells, installs and services a full range of elevator and lift products within the State of Colorado. The company satisfies both the residential and commercial market and has a great base of existing custom home builders and general contractors that utilise its services on a routine basis.

Savaria Corporation (savaria.com) is one of North America’s leaders in the accessibility industry. It provides accessibility solutions for the physically challenged to increase their comfort, their mobility and their independence. Its product line is one of the most comprehensive on the market. Savaria designs, manufactures, distributes and installs accessibility equipment, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts, elevators for home and commercial use, as well as ceiling lifts. Following its recent acquisition, Savaria also manufactures and markets a comprehensive selection of pressure management products for the medical market, medical beds for the long-term care market, mattress overlays and foam pillows for the retail market and certain products for the industrial market, primarily foam products. In addition, Savaria converts and adapts vehicles to be wheelchair accessible. It also operates a network of franchisees and corporate stores through which new and recycled accessibility equipment is sold. Savaria records around 66% of its revenue outside Canada, primarily in the United States. It operates a sales network of some 400 retailers in North America and employs some 800 people. Its plants are located in Laval and Magog (Quebec), Brampton, Beamsville and Toronto (Ontario), Greenville (South Carolina), Huizhou (China) and Brisbane (Australia).

Cautionary Notice Regarding Forward-Looking Statements

Certain information in this press release may constitute “forward-looking statements” regarding Savaria, including, without being limited thereto, understanding of the elements that might affect the Corporation’s future, relating to its financial or operating performance, the costs and schedule of future acquisitions, supplementary capital expenditure requirements and legislative matters. Most frequently, but not invariably, forward-looking statements are identified by the use of such terms as “plan”, “expect”, “should”, “could”, “budget”, “expected”, “estimated” “forecast”, “intend”, “anticipate”, “believe”, variants thereof (including negative variants) or statements that certain events, results or shares “could”, “should” or “will” occur or be achieved. Such statements involve known and unknown risks, uncertainties and other factors liable to cause Savaria’s actual results, performance or achievements to differ materially from those set forth in or underlying the forward-looking statements. Such factors notably include general, economic, competitive, political and social uncertainties. Although Savaria has attempted to identify the key elements liable to cause actual measures, events or results to differ from those described in the forward-looking statements, other factors could have an impact on the reality and produce unexpected results. The forward-looking statements contained herein are valid at the date of this press release. As there can be no assurance that these forward-looking statements will prove accurate, actual future results and events could differ materially from those anticipated therein. Accordingly, readers are strongly advised not to unduly rely on these forward-looking statements.

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