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Savaria Corporation agrees to acquire the assets of Visilift, LLC

T.SIS

Savaria Corporation agrees to acquire the assets of Visilift, LLC

LAVAL, QUEBEC--(Marketwired - Aug 24, 2017) - Savaria Corporation ("Savaria" or the "Company") (TSX:SIS), one of North America's leaders in the accessibility industry, announced today that it has entered into an agreement (the "Acquisition Agreement") with Visilift, LLC ("Visilift") pursuant to which Savaria, through a wholly-owned subsidiary, will acquire all of the assets of Visilift for US$5.0 million (about C$ 6.28 million) (the "Purchase Price").

Pursuant to the Acquisition Agreement, US$3.5 million of the Purchase Price will be payable immediately, with the balance of US$1.5 million payable to Visilift upon the completion of certain post-closing conditions, including the transfer of production activities to Savaria's manufacturing facilities in Brampton, Ontario. In addition to the Purchase Price, Visilift will have the opportunity to earn an additional payment of US$3.0 million upon achieving certain performance metrics over a three-year period.

Savaria expects the acquired business to generate US$3.0 million in sales in 2018 and US$10 million in sales in 2019, with EBITDA margins of approximately 20%.

Founded in 2007 and based in Eaton, Colorado, Visilift manufactures and markets round and octagonal panoramic glass elevators for the residential market. The integrated full-view hoistways are an artistic design centerpiece in many homes. Visilift elevators can be produced and installed without major modifications to existing home sites and seamlessly integrated into new construction projects. Installation requires less time and expense, as hoistway is included, and pit and machine room are not necessary.

"Having a mission to be a leader in the North American accessibility market, we are constantly in search of new and innovative products that complement and enhance our existing portfolio. Therefore, it brings me great pleasure to announce the acquisition of Visilift's cutting-edge glass elevator technology," said Marcel Bourassa, Chairman, President and Chief Executive Officer of Savaria.

Mr. Bourassa further commented, "Kevin Simmons and his team have developed a unique, round glass elevator that will be an exciting new product for our dealer network both in North America and internationally, especially within the Asian market. Along with Kevin, Visilift's head of sales, Jesse Simmons, and chief engineer, Dylan Hochstetler, will work within a dedicated group at Savaria to further develop this product. To that end, Savaria has hired three specialized engineers to support this initiative."

About Savaria

Savaria Corporation (savaria.com) is one of North America's leaders in the accessibility industry. It provides accessibility solutions for the physically challenged to increase their comfort, their mobility and their independence. Its product line is one of the most comprehensive on the market. Savaria designs, manufactures, distributes and installs accessibility equipment, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts, as well as elevators for home and commercial use. Following its recent acquisition, Savaria also manufactures and markets a comprehensive selection of pressure management products for the medical market, medical beds for the long-term care market, mattress overlays and foam pillows for the retail market and certain products for the industrial market, primarily foam products. In addition, Savaria converts and adapts vehicles to be wheelchair accessible. It also operates a network of franchisees and corporate stores through which new and recycled accessibility equipment is sold. Factoring in its most recent acquisition, Savaria will record around 70% of its revenue outside Canada, primarily in the United States. It operates a sales network of some 400 retailers in North America and employs some 800 people. Its principal plants are located in Laval and Magog (Quebec), Brampton and Beamsville (Ontario), Greenville (South Carolina) and Huizhou (China).

About Visilift

Visilift, LLC (www.visiliftelevators.com) was founded in 2007 by Kevin Simmons with the goal of creating a home elevator unlike any other. For today's homeowner, functionality and aesthetic appeal must coexist throughout all aspects of a product. Since inception, Visilift focused on round and octagonal elevators with fully transparent walls from floor to ceiling in both car and the integrated hoistway.

Lead by a small team including head of sales, Jesse Simmons and chief engineer, Dylan Hochstetler, the company grew steadily for ten years from startup to an integrated marketing, design and manufacturing operation. Today, its products are embraced by architects and discerning buyers around the world. Visilift elevators are centerpiece contributions in premier residences from urban townhomes and penthouses to island resorts and mountaintop getaways.

Cautionary Notice Regarding Forward Looking Statements

Certain information in this press release may constitute "forward-looking statements" regarding Savaria, including, without being limited thereto, understanding of the elements that might affect the Corporation's future, relating to its financial or operating performance, the costs and schedule of future acquisitions, supplementary capital expenditure requirements and legislative matters. Most frequently, but not invariably, forward-looking statements are identified by the use of such terms as "plan", "expect", "should", "could", "budget", "expected", "estimated" "forecast", "intend", "anticipate", "believe", variants thereof (including negative variants) or statements that certain events, results or shares "could", "should" or "will" occur or be achieved. Such statements involve known and unknown risks, uncertainties and other factors liable to cause Savaria's actual results, performance or achievements to differ materially from those set forth in or underlying the forward-looking statements. Such factors notably include general, economic, competitive, political and social uncertainties. Although Savaria has attempted to identify the key elements liable to cause actual measures, events or results to differ from those described in the forward-looking statements, other factors could have an impact on the reality and produce unexpected results. The forward-looking statements contained herein are valid at the date of this press release. As there can be no assurance that these forward-looking statements will prove accurate, actual future results and events could differ materially from those anticipated therein. Accordingly, readers are strongly advised not to unduly rely on these forward-looking statements.

Facebook: https://www.facebook.com/savariabettermobility

Twitter: https://twitter.com/Mobilityforlife

Helene Bernier, CPA, CA
Vice President, Finance
1-800-931-5655, ext. 248
helene.bernier@savaria.com
Marcel Bourassa
President and Chief Executive Officer
1-800-661-5112
marcel.bourassa@savaria.com
www.savaria.com



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