Finning International Inc T.FTT

Finning Acquires Cat Dealers in 3 Countries

[Georgia_Straight]

Finning International Inc. Quick Quote: T.FTT 23.95 (+0.88) Finning Acquires Caterpillar Dealerships in Three South American Countries 11/26/02 VANCOUVER, BRITISH COLUMBIA, Nov 26, 2002 (CCNMatthews via COMTEX) -- Finning International Inc. ("Finning") announced today that it has reached agreements to acquire the Caterpillar dealerships in Argentina, Uruguay and Bolivia. The transactions are expected to close within the next 60 days. Expected annual revenue for these combined dealerships in 2002 is C$110 million (revenue in these dealerships as recently as 1998 was approximately C$300 million). It is anticipated that the newly acquired dealerships will be slightly accretive to earnings in the first year of operations. Combined with its existing dealership in Chile, these acquisitions expand Finning's presence in South America. Finning operations in South America now span four adjacent countries with 22 branches and 2,264 employees, with total revenue of approximately C$560 million. The operations cover a natural resource land area of 4.84 million square kilometres, equivalent to roughly one and a half times the size of Finning's territory in Western Canada. ------------------------------------------------------------------------ Number of Number of Country Company Branches Employees Industry focus ------------------------------------------------------------------------ Chile Finning 9 1,792 Mining, Forestry, Construction, Fishing ------------------------------------------------------------------------ Argentina Macrosa* 10 359 Mining, Oil & Gas, Construction, Agriculture ------------------------------------------------------------------------ Uruguay Gemcosa* 1 35 Construction, Forestry, Agriculture, Mining ------------------------------------------------------------------------ Bolivia Matreq* 2 78 Mining, Oil & Gas, Agriculture, Construction ------------------------------------------------------------------------ *Newly acquired dealership Commenting on the acquisitions, Doug Whitehead, President and CEO of Finning noted: "We have identified the Southern Cone of South America as a key strategic market for Finning. This move strengthens our franchise by balancing our South American portfolio across business lines and industry segments. As the Caterpillar dealer in Argentina, Bolivia, Chile and Uruguay, we are poised to become the pan-Andean supplier of choice for customers within our target industries. Despite challenging economic conditions, each of the three acquired dealers are either profitable or operating at break-even levels. Customers typically include large mining and oil & gas enterprises with contracts denominated in US dollars. With a number of synergies already identified, Finning is adding three well-managed businesses with loyal customers, skilled and dedicated employees, and solid long-term potential. We believe that the current market opportunity in the Southern Cone allows us to position Finning for long-term growth at today's low cost of entry. We are delighted to welcome our newest dealers and their many talented employees to the Finning family." Macrosa has 75 years of experience as the Caterpillar dealer in Argentina, which provides Finning with immediate access to the second largest economy in South America with 37 million residents, and a resource-rich country with excellent mining and oil & gas prospects as well as construction and agricultural opportunities. Matreq, the Caterpillar dealer in Bolivia, provides Finning access to a country rich in natural resources, including natural gas, petroleum and minerals. Gemcosa, the Caterpillar dealer in Uruguay also gives Finning access to a country with opportunites in natural resources and manufacturing. The purchase price for the shares of these companies is C$51 million, which will be funded through debt. In addition, Finning will be assuming approximately C$51 million in debt. CONFERENCE CALL Finning will host a conference call today at 12:30 p.m. EDT to discuss this transaction in further detail. You are invited to participate in the call by dialing one of the following numbers: Toll-free number for participants Number for participants dialling from anywhere within dialling from the Toronto Canada and the United States: area and overseas: 1-877-461-2814 [phone] The call will be webcast live at www.finning.com/investor and archived on the website for the next three months. Finning International Inc. sells, rents, finances and provides customer support services for Caterpillar equipment and engines, and complementary equipment, in Western Canada, the U.K. and Chile. The corporation's Head Office is located in Vancouver, B.C., Canada. Finning International Inc. (www.finning.com) is a widely held, publicly traded corporation, listed on the Toronto Stock Exchange (symbol FTT). This release contains forward-looking statements and information, which reflect the current view of Finning International Inc. with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and Finning's actual results of operations could differ materially from historical results or current expectations. Finning assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein do not materialize. Refer to Finning's annual report, management information circular, annual information form and other filings with the Ontario Securities Commission and Toronto Stock Exchange for further information on risks and uncertainties that could cause actual results to differ materially from forward-looking statements contained in this report. To view Fact Sheet on Finning Operations in South America please click here: https://www2.cdn-news.com/database/fax/2000/FTT-SouthAmerica.pdf Finning International Inc. Anthony R. Guglielmin Vice President and Corporate Treasurer [phone] [phone] (FAX) Email: [e-mail] Website: www.finning.com NEWS RELEASE TRANSMITTED BY CCNMatthews Copyright (C) 2002, Canadian Corporate News. All rights reserved. News provided by Comtex © 2002 StockHouse.com | DisclaimerFinning International Inc. Quick Quote: T.FTT 23.95 (+0.88) Finning Acquires Caterpillar Dealerships in Three South American Countries 11/26/02 VANCOUVER, BRITISH COLUMBIA, Nov 26, 2002 (CCNMatthews via COMTEX) -- Finning International Inc. ("Finning") announced today that it has reached agreements to acquire the Caterpillar dealerships in Argentina, Uruguay and Bolivia. The transactions are expected to close within the next 60 days. Expected annual revenue for these combined dealerships in 2002 is C$110 million (revenue in these dealerships as recently as 1998 was approximately C$300 million). It is anticipated that the newly acquired dealerships will be slightly accretive to earnings in the first year of operations. Combined with its existing dealership in Chile, these acquisitions expand Finning's presence in South America. Finning operations in South America now span four adjacent countries with 22 branches and 2,264 employees, with total revenue of approximately C$560 million. The operations cover a natural resource land area of 4.84 million square kilometres, equivalent to roughly one and a half times the size of Finning's territory in Western Canada. ------------------------------------------------------------------------ Number of Number of Country Company Branches Employees Industry focus ------------------------------------------------------------------------ Chile Finning 9 1,792 Mining, Forestry, Construction, Fishing ------------------------------------------------------------------------ Argentina Macrosa* 10 359 Mining, Oil & Gas, Construction, Agriculture ------------------------------------------------------------------------ Uruguay Gemcosa* 1 35 Construction, Forestry, Agriculture, Mining ------------------------------------------------------------------------ Bolivia Matreq* 2 78 Mining, Oil & Gas, Agriculture, Construction ------------------------------------------------------------------------ *Newly acquired dealership Commenting on the acquisitions, Doug Whitehead, President and CEO of Finning noted: "We have identified the Southern Cone of South America as a key strategic market for Finning. This move strengthens our franchise by balancing our South American portfolio across business lines and industry segments. As the Caterpillar dealer in Argentina, Bolivia, Chile and Uruguay, we are poised to become the pan-Andean supplier of choice for customers within our target industries. Despite challenging economic conditions, each of the three acquired dealers are either profitable or operating at break-even levels. Customers typically include large mining and oil & gas enterprises with contracts denominated in US dollars. With a number of synergies already identified, Finning is adding three well-managed businesses with loyal customers, skilled and dedicated employees, and solid long-term potential. We believe that the current market opportunity in the Southern Cone allows us to position Finning for long-term growth at today's low cost of entry. We are delighted to welcome our newest dealers and their many talented employees to the Finning family." Macrosa has 75 years of experience as the Caterpillar dealer in Argentina, which provides Finning with immediate access to the second largest economy in South America with 37 million residents, and a resource-rich country with excellent mining and oil & gas prospects as well as construction and agricultural opportunities. Matreq, the Caterpillar dealer in Bolivia, provides Finning access to a country rich in natural resources, including natural gas, petroleum and minerals. Gemcosa, the Caterpillar dealer in Uruguay also gives Finning access to a country with opportunites in natural resources and manufacturing. The purchase price for the shares of these companies is C$51 million, which will be funded through debt. In addition, Finning will be assuming approximately C$51 million in debt. CONFERENCE CALL Finning will host a conference call today at 12:30 p.m. EDT to discuss this transaction in further detail. You are invited to participate in the call by dialing one of the following numbers: Toll-free number for participants Number for participants dialling from anywhere within dialling from the Toronto Canada and the United States: area and overseas: 1-877-461-2814 [phone] The call will be webcast live at www.finning.com/investor and archived on the website for the next three months. Finning International Inc. sells, rents, finances and provides customer support services for Caterpillar equipment and engines, and complementary equipment, in Western Canada, the U.K. and Chile. The corporation's Head Office is located in Vancouver, B.C., Canada. Finning International Inc. (www.finning.com) is a widely held, publicly traded corporation, listed on the Toronto Stock Exchange (symbol FTT). This release contains forward-looking statements and information, which reflect the current view of Finning International Inc. with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and Finning's actual results of operations could differ materially from historical results or current expectations. Finning assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein do not materialize. Refer to Finning's annual report, management information circular, annual information form and other filings with the Ontario Securities Commission and Toronto Stock Exchange for further information on risks and uncertainties that could cause actual results to differ materially from forward-looking statements contained in this report. To view Fact Sheet on Finning Operations in South America please click here: https://www2.cdn-news.com/database/fax/2000/FTT-SouthAmerica.pdf Finning International Inc. Anthony R. Guglielmin Vice President and Corporate Treasurer [phone] [phone] (FAX) Email: [e-mail] Website: www.finning.com NEWS RELEASE TRANSMITTED BY CCNMatthews Copyright (C) 2002, Canadian Corporate News. All rights reserved. News provided by Comtex © 2002 StockHouse.com | Disclaimer