Press release from CNW Group
Canam Goup Inc. sells its investment in structural bolts distributor Amcan-Jumax Inc.
Wednesday, May 09, 2012
Canam Goup Inc. sells its investment in structural bolts distributor Amcan-Jumax Inc.08:00 EDT Wednesday, May 09, 2012SAINT-GEORGES, QC, May 9, 2012 /CNW Telbec/ - Canam Group Inc. (TSX: CAM) today announced the sale of its 50% investment in Amcan-Jumax Inc. to Boulonnerie de Montréal Inc. for a consideration of approximately $8,100,000. The Corporation cashed an amount of $5,600,000 at the close of the transaction and an amount of $500,000 has been placed in trust for adjustments to the sale price. The balance of the sale price, i.e. $2,000,000, will be cashable over a 40-month period at a rate of $50,000 per month. A gain on disposal of investment estimated at $2,000,000 will be recognized in the second quarter of 2012. Amcan-Jumax Inc. is a structural bolts distributor catering to the steel construction industry. The Corporation's co-shareholder in Amcan-Jumax also sold its 50% investment.President and Chief Executive Officer Marc Dutil indicated that in addition to being profitable for Canam Group, this transaction also falls under the Corporation's strategy to dispose of certain investments and focus on its main construction activities, these being buildings, structural steel and bridges.About Canam Group Inc.Canam Group is a leader in the design and fabrication of construction products and solutions, and a leading provider of design-build and virtual design and construction services. The Corporation operates more than 25 manufacturing plants and engineering offices in Canada, the United States, Romania, India and China, and has ownership interests in companies located in China and France.For further information: François Bégin Vice President, Communications Canam Group Inc. Telephone: 418-228-8031 Email: firstname.lastname@example.org