Texada Announces the Expansion of Noble Iron's Rental and Distribution Operations to Texas
June 11, 2012
GUELPH, ONTARIO—(Marketwire – June 11, 2012) – Texada Software Inc. (TSX VENTURE:TXS) (“Texada” or the “Company”), following the recent announcement of an exclusive distribution agreement with LiuGong Construction Machinery for the Houston, Texas marketplace and the closing of a $25.0 Ml. U.S. refinancing of its equipment rental operations in Southern California, is pleased to announce that it has entered into a non-binding agreement (the “Agreement”) to acquire selected operating assets of Bane Machinery Houston LP located in Houston, Texas. The transaction will be completed by a subsidiary of Noble Iron, Inc. (“Noble”), a wholly owned U.S. subsidiary of the Company.
“This transaction will mark our entry into a second major market in the U.S. The business will operate a full rental and distribution location (CELL: Centralized Equipment Logistics Location TM) serving southeast Texas from our leased facility located at 505 Rankin Road, Houston, Texas. This extension of our operational footprint will allow Noble to expand upon its strong relationship with the Terex Corporation and our exclusive distribution of LiuGong Construction Machinery” stated Willie Swisher, CEO of Texada and Noble. He continued by saying, “as we continue to expand the Noble brand into the construction equipment industry, our overriding goal is to seek out and execute on opportunities that are conducive to the expansion of our brand, provide our customers a remarkable experience and that create exceptional value to our stakeholders.”
The Agreement is for the acquisition of certain operating assets of Bane Machinery. Along with the purchase of the Bane assets, including earth moving equipment, Noble is expected to retain all employees and an extensive, active customer list. In conjunction with the closing of the Agreement, Noble will enter into a lease on the property currently occupied by Bane Machinery’s Houston operations. The total consideration for the acquisition of the operating assets is expected to be approximately $1.9 Ml. U.S. None of Bane Machinery’s liabilities will be assumed as part of the transaction.
The Agreement is subject to certain customary conditions in favor of the Company, including the completion of satisfactory due diligence, the entering into an acceptable real estate lease and financing, satisfactory to the Company. It is anticipated that the Agreement will close on or before July 20, 2012.
More information may be found at www.sedar.com.
About Texada Software Inc. (TSX VENTURE:TXS)
Texada Software Inc. operates in three complementary businesses, equipment rental, equipment dealership and enterprise asset management software.
The Company, through its wholly owned U.S. subsidiaries, is expanding its presence in the construction and industrial equipment industry. Noble Rents, Inc. is a significant equipment rental business serving Southern California with over 7,000 customers and a wide range of over 1,100 aerial, forklift and light compact equipment rental units. Noble Equipment, Inc. is the exclusive distributor of LiuGong Construction Machinery equipment in Southeast Texas.
Texada’s enterprise software business continues as the premier provider of software solutions for equipment rental and mobile equipment. Texada’s solutions are fully flexible and scalable to meet the unique needs of any sized operation and are backed by proven implementation, services and support. Texada’s market-driven software products combine knowledge and best practices from over 5,000 users worldwide, resulting in solutions that manage the complete asset life-cycle from acquisition through to disposal.
Texada can be reached at 1-800-361-1233 or 1-519-836-7073, or at www.texadasoftware.com.
This news release may contain forward-looking statements which reflect the Company’s current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan, “estimate”, “expect”, “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Texada’s ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
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