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Strongco Completes Sale and Leaseback of Mississauga Facility

September 29, 2014
By

– Proceeds to be Redeployed to Reduce Debt –

TSX Symbol: SQP 

MISSISSAUGA, ON , Sept. 29, 2014 /CNW/ – Strongco Corporation (SQP.TO) announced today that it has completed the sale and 15-year
leaseback of its Mississauga location, which houses its main Volvo
branch in Ontario , as well as central services and corporate office,
for the purchase price of $17.25 million .

As previously announced, Strongco plans to monetize several of its real
estate holdings through sale and leaseback transactions, with proceeds
to be redeployed to reduce debt. In addition to the Mississauga
location, Strongco has now completed the sales of the recently
constructed branches in Fort McMurrray, Alberta and Saint
Augustin-de-Desmaures, Quebec . The sale of branches in Val D’Or, Quebec
and Moncton, New Brunswick are expected to close in the fourth quarter.
The gross proceeds from the transactions are expected to be
approximately $47 million .

“It has always been our strategic intent to not tie up capital in real
estate assets over the long term, and, given the substantial increase
in property values within these regions, we believe it is an opportune
time to sell and lease back these properties and use the proceeds more
effectively within the business operations,” said Bob Dryburgh ,
President and Chief Executive Officer. “These sale and leasebacks
support our strategy to continually strengthen Strongco’s balance sheet
and deploy capital more efficiently.”

About Strongco Corporation

Strongco Corporation is a major multiline mobile equipment dealer with
operations across Canada and in the United States , operating through
Chadwick-BaRoss, Inc. Strongco sells, rents and services equipment used
in diverse sectors such as construction, infrastructure, mining, oil
and gas, utilities, municipalities, waste management and forestry. The
Company has approximately 750 employees serving customers from 27
branches in Canada and five in the United States . Strongco represents
leading equipment manufacturers with globally recognized brands,
including Volvo Construction Equipment, Case Construction, Manitowoc
Crane, including National and Grove, Terex Cedarapids, Terex Finlay ,
Terex Fuchs , Terex Trucks , Ponsse, Fassi, Sennebogen, Konecranes and
SDLG. Strongco is listed on the Toronto Stock Exchange under the symbol
SQP.

Forward-Looking Statements

This news release contains “forward-looking” statements within the
meaning of applicable securities legislation which involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Strongco or industry
results, to be materially different from any future results, events,
expectations, performance or achievements expressed or implied by such
forward-looking statements. All such forward-looking statements are
made pursuant to the “safe harbour” provisions of applicable Canadian
securities legislation. Forward-looking statements typically contain
words or phrases such as “may”, “outlook”, “objective”, “intend”,
“estimate”, “anticipate”, “should”, “could”, “would”, “will”, “expect”,
“believe”, “plan” and other similar terminology suggesting future
outcomes or events. This news release contains forward-looking
statements relating to the expected trading of common shares of
Strongco on the TSX, and such statements are based upon the
expectations of management.

SOURCE Strongco Corporation

View photo

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Contact:

J. David Wood
Vice-President and Chief Financial Officer
905.565.3808
jdwood@strongco.com
strongco.com

Article source: http://finance.yahoo.com/news/strongco-completes-sale-leaseback-mississauga-223800800.html

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