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Exchange Income Corporation Announces the Acquisition of Armand Duhamel & Fils Inc.Exchange Income Corporation (TSX: EIF) ("EIC" or the "Corporation") a diversified, acquisition-oriented company focused on opportunities in the Aerospace & Aviation and Manufacturing segments, announced today it has acquired Armand Duhamel & Fils Inc. ("Duhamel"), a privately owned Quebec-based company, for $19 million, which can increase up to $22 million if certain post-closing targets are achieved. The purchase price was funded by the issuance of $3 million of EIC common shares to the vendors and cash in the amount of $16 million from the Corporation's credit facility. Duhamel, founded in 1965 in St-Ignace-de-Stanbridge, Quebec, owns and operates a sawmill operation that manufactures products for customers in Quebec, Ontario, and Atlantic Canada. Duhamel primarily focuses on the manufacturing and sale of eastern hemlock products, for which they are a leader in the Quebec market. The company operates on approximately 40 acres of owned land that includes its lumber yard and sawmill. Duhamel will play an important role in partnership with Northern Mat and Bridge LP ("Northern Mat") to further grow our Environmental Access Solutions business line in the Quebec market and Eastern Canada. "The acquisition of Duhamel represents an exciting strategic opportunity for Northern Mat to bolster its presence in the Quebec market. The Northern Mat team has made considerable advances in bringing its services and the acceptance of access mats as a best practice to Ontario. The next major market is Quebec, where we expect there to be significant capital project spend over the next decade," said Mike Pyle, CEO of EIC. Guillaume Gonthier, co-owner of Duhamel is continuing as the President of the company. In discussing the decision to sell to EIC, Mr. Gonthier stated, "Over the last couple of years, we have had the opportunity to work closely with the Northern Mat team and have experienced the professionalism and hard work that is put into their strategy. We are confident that joining Northern Mat and EIC was the right choice for our stakeholders, including our employees and customers, and we look forward to playing an important role in their Quebec strategy." "We are very excited to announce the acquisition of Duhamel and welcome Guillaume and his team into the EIC family," stated Shane Stewart, Northern Mat's President & COO. "Duhamel's first-class reputation and management are key to Northern Mat's Quebec strategy going forward. The Quebec market will be robust over the decade to come, and having a strong local presence will allow us to offer a comprehensive offering to our clients, ensuring that we are the premier provider of access solutions in the province." "This acquisition adds a successful manufacturer to our Environmental Access Solutions business line and hits all EIC's acquisition requirements, including being immediately accretive to our shareholders on a per share basis," said Adam Terwin, Chief Corporate Development Officer of EIC. "Within this business line we see strong demand to support infratructure projects and their ongoing maintenance tied to the demand for electricity and energy transition. Quebec will be an important market driven by its current hydroelectric capabilities and its planned investments. To serve the market and its customers, we need a deep local presence in the community which is provided by Duhamel and supported by their long history of successful operations in the province. EIC continues to look for additional opportunities to support the growth of our Environmental Access Solutions business line based on the market outlook for anticipated strong demand."
About Exchange Income Corporation
About Northern Mat and Bridge LP
About Armand Duhamel & Fils Inc.
Caution concerning forward-looking statements
Except as required by Canadian Securities Law, Exchange Income Corporation does not undertake to update any forward-looking statements; such statements speak only as of the date made. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by Exchange Income Corporation with the securities regulatory authorities, available at www.sedarplus.ca.
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