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LASALLE, QC, Sept. 16, 2021 /CNW Telbec/ - GDI Integrated Facility Services Inc. (TSX: GDI) (the "Company" or "GDI") is pleased to announce two acquisitions successfully completed by its operating subsidiaries during September 2021.
Effective on September 1, 2021, Ainsworth Inc. ("Ainsworth") continued its expansion in the U.S. market with the acquisition of Enginuity, LLC ("Enginuity"). The Enginuity transaction follows Ainsworth's first strategic U.S. acquisition of The BPAC Group Inc. in January 2021. Based in Mechanicsburg, PA with an office in Glen Arm, MD, Enginuity is a leading design/build mechanical contractor and service provider in Pennsylvania and Maryland. With a company culture centered on safety, selflessness, trust and drive, Enginuity has become the mechanical solutions provider of choice for clients with technologically complex projects and for those seeking a reliable and dependable service provider to handle all of their mechanical needs. Geographically, Enginuity is well positioned to support GDI's Janitorial USA business segment which has a strong operating presence in Pennsylvania and the Delaware Valley.
Additionally, on September 15, 2021, Superior Solutions LP ("Superior") completed the acquisition of certain assets of Fuller Industries, LLC ("Fuller") via a newly-formed U.S. subsidiary. The Fuller transaction represents the first acquisition in the U.S. market for GDI's janitorial products manufacturing and distribution business. Based in Great Bend, Kansas, Fuller operates a 585,000 sq.ft. chemical and cleaning products manufacturing facility with a significant amount of excess manufacturing capacity and will be instrumental to support Superior's growth in the U.S market. Fuller manufactures a full line of cleaning chemicals as well as a range of cleaning products such as spray bottles, plastic containers, brooms and brushes for the commercial and industrial markets.
The combined proforma annual revenue generated by the Enginuity and Fuller businesses in their recent trailing-twelve month periods was approximately USD$60 million. Enginuity's Adjusted EBITDA margin1 is in-line with that of Ainsworth and Fuller's Adjusted EBITDA1 margin profile is expected to be in-line with and potentially higher than that of GDI's overall business as manufacturing volumes increase.
"We are very excited about both of these partnerships," stated Claude Bigras, President & CEO of GDI. "Enginuity is a very well-run business with a strong culture that is perfectly aligned with our own, and it is a solid strategic fit as it operates within GDI's existing Janitorial USA geographic footprint. Joining forces with Fuller provides us with a large manufacturing platform in the geographic center of the U.S. market and a significant amount of excess capacity to support future growth. Additionally, we believe that having the ability to offer U.S. clients with a made in America product offering will enable Superior to accelerate its penetration of the U.S. market. I would like to welcome the team members of Enginuity and Fuller to the GDI family and let the know that we look forward to generating growth and prosperity together," concluded Mr. Bigras.
1 The terms "Adjusted EBITDA" and "Adjusted EBITDA Margin" do not have standardized definitions prescribed by International Financial Reporting Standards and therefore, may not be comparable to similar measures presented by other companies. "Adjusted EBITDA" is defined as operating income before depreciation and amortization, Canadian Emergency Wage Subsidy and related expenses, transaction, reorganization and other costs and share-based compensation. The Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by revenues. For more details and for a reconciliation of that measure to the most directly comparable IFRS measure, consult the "Operating and Financial Results" section of the Company's Management Discussion & Analysis (MD&A).
GDI is a leading commercial facility services provider which offers a range of services in Canada and the United States to owners and managers of a variety of facility types including office buildings, hotels, shopping centres, industrial facilities, healthcare establishments, distribution facilities, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial, installation, maintenance and repair of HVAC-R, mechanical and electrical systems, as well as other complementary services such as damage restoration and janitorial products manufacturing and distribution. GDI's subordinate voting shares are listed on the Toronto Stock Exchange (TSX: GDI). Additional information on GDI can be found on its website at www.gdi.com.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to GDI's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "confident"; "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding GDI's and Ainsworth's future operating results and economic performance and its objectives and strategies, and the anticipated benefits of the BP acquisition are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which GDI believes are reasonable as of the current date. While management considers these assumptions to be reasonable, they may prove to be incorrect. It is impossible for GDI to predict with certainty the impact that the current economic uncertainties may have on future results. The matters addressed in these statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the risk that the existing and acquired business will not be integrated successfully, the risk that cost savings and synergies expected to result from the acquisition may not be fully realized or may take longer to realize than expected, disruption from the acquisition making it more difficult to maintain relationships with customers, employees or suppliers and the effect of general economic conditions. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While management may elect to, the Company is under no obligation and does not undertake to update or alter this information at any particular time, except as may be required by law.
SOURCE GDI Integrated Facility Services Inc.
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