CALGARY, Nov. 5, 2019 /CNW/ - Mosaic Capital Corporation
("Mosaic" or the "Company") (TSX–V Symbols: M
and M.DB) announced today that it, along with its
minority operating partner, has sold Ambassador Mechanical LP
("Ambassador") to an undisclosed third party.
Consideration to Mosaic for the unsolicited sale of Ambassador
was approximately $15.0 million in
cash, which has been initially used to reduce outstanding debt.
Mosaic now has approximately $35
million available on its acquisition credit facility that
can be deployed into future investment opportunities.
Mosaic generated a cash-on-cash internal rate of return of 20%
and received, in distributions plus sale proceeds, a multiple of
2.5 times over its invested capital during the life of its
investment in Ambassador.
Ambassador, a leading, multi-faceted mechanical contractor, was
founded in 1991 and was one of Mosaic's longer-tenured partners
after the Company acquired its majority equity interest from the
founder in early 2012.
"We are pleased with the investment return profile and financial
outcome of this transaction for our shareholders which includes the
creation of incremental liquidity that can be re-deployed into
accretive acquisition growth opportunities" stated Mark Gardhouse, President and CEO. "As we enter
our annual budgeting and strategic planning process, we will renew
our efforts to capture both organic and new acquisition
opportunities which will provide the potential for meaningful
growth next year".
ABOUT MOSAIC CAPITAL CORPORATION
Mosaic is a Canadian investment company that owns a portfolio of
established businesses which span a diverse range of industries and
geographies. Mosaic's strategy is to create long-term value for its
shareholders through accretive acquisitions, long-term portfolio
ownership, sustained cash flows and organic portfolio growth.
Mosaic achieves its objectives by maintaining financial discipline,
acquiring businesses at attractive valuations, performing extensive
acquisition due diligence, utilizing optimal transaction
structuring and working closely with subsidiary businesses after
acquisition.
Reader Advisory
Forward-Looking Statements
This news release contains forward-looking information and
statements within the meaning of applicable Canadian securities
laws (herein referred to as "forward-looking statements")
that involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. All information and statements in this news release
which are not statements of historical fact may be forward-looking
statements. The words "believe", "expect", "intend", "estimate",
"anticipate", "project", "scheduled", and similar expressions, as
well as future or conditional verbs such as "will", "should",
"would", and "could" often identify forward-looking statements.
Forward-looking statements included in this news release include
but are not limited to:
- availability on the Company's acquisition line of
credit;
- ability of the Company to capture organic and new
acquisition growth opportunities;
- the potential for meaningful growth.
Such statements or information, if any, are only predictions
and reflect the current beliefs of management with respect to
future events and are based on information currently available to
management. Actual results and events may differ materially from
those contemplated by these forward-looking statements due to these
statements being subject to a number of risks and uncertainties.
Undue reliance should not be placed on these forward-looking
statements as there can be no assurance that the plans, intentions
or expectations upon which they are based will occur.
By their nature forward-looking statements involve
assumptions and known and unknown risks and uncertainties, both
general and specific, that contribute to the possibility that the
predictions, forecasts, projections and other things contemplated
by the forward-looking statements will not occur. A number of
factors could cause actual results to differ materially from the
results stated in the forward-looking statements, including, but
not limited to, risks related to: potential sale transaction
post-closing adjustments; sale transaction representations and
warranties provided; general economic and business conditions; the
failure to realize the anticipated benefits of Mosaic's recent and
future acquisitions; adverse fluctuations in commodity prices;
competition for, among other things, capital, equipment and skilled
personnel; the inability to generate sufficient cash flow from
operations to meet current and future obligations; the inability to
obtain required debt and/or equity capital on suitable terms;
competition for acquisition targets; adverse weather conditions;
seasonality and fluctuations in results; and limited
diversification of Mosaic's subsidiaries. Should any of the risks
or uncertainties facing Mosaic and its subsidiaries materialize, or
should assumptions underlying the forward-looking statements prove
incorrect, actual results, performance, activities or achievements
could vary materially from those expressed or implied by any
forward-looking statements contained in this news release.
Although Mosaic believes that the expectations represented by
any forward-looking-statements contained herein are reasonable
based on the information available to them on the date of this news
release, management cannot assure investors that actual results,
performance or achievements will be consistent with these
forward-looking statements. Any forward-looking statements herein
contained are made as of the date of this press release and Mosaic
does not assume any obligation to update or revise them to reflect
new information, events or circumstances, except as required by
law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Mosaic Capital Corporation