Commercial Solutions Inc. ("Commercial" or the "Company") (TSX: CSA) is pleased to announce that it has completed the acquisition of 100% of the issued and outstanding shares of Raeside Equipment Ltd. ("Raeside") for $12.0 million in cash, subject to certain adjustments, and a $2.5 million non-competition payment.
Raeside, headquartered in Coquitlam, British Columbia, is a well-established business with a solid track record of profitability, operating out of ten locations (eight in British Columbia and two in Alberta), with 44 employees. Raeside focuses on the distribution of bearings and power transmission supplies to a large and diverse customer base within the Mining, Marine, Timber and Pulp and Paper industries. Raeside's financial statements for the year ended December 31, 2005 reported revenues in excess of $20.0 million.
Commercial President and CEO, Jim Barker, said, "Raeside is a vital acquisition within the bearings and power transmission industry in Western Canada. This acquisition presents Commercial with a number of opportunities, including considerable synergies with our vendors on key product lines, geographic and industry diversity and, most importantly, the addition of loyal employees with superior experience and knowledge in our key product groups, all aspects which are difficult to obtain. Raeside's Fort St.John location will allow Commercial to expand its Oilfield Supplies business, taking advantage of the economic growth in that area."
About Commercial
Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 40 Services Centres and approximately 350 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. For further information on the Company, please visit www.commercialsolutions.ca and for detailed financial information visit www.sedar.com.
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