WINNIPEG, December 5, 2011 – Empire Industries Ltd. (TSX-V: EIL) today announced it has signed a definitive agreement to sell its Empire Iron Works structural steel fabrication operations in Winnipeg and its Hopkins Steel Works facility in Welland to the Supreme Group, western Canada’s largest steel fabrication company. This is a cash transaction valued at approximately $3.8 million plus the value of selected working capital. The transaction is scheduled to close December 31, 2011, subject to typical commercial closing conditions, including regulatory approval.
Empire continues to participate in the structural steel market, primarily through its Empire Iron Works facility in Edmonton and its Dynamic Structures facility in Port Coquitlam. “The Company remains focused on fabricated steel markets where it has unique advantages such as the oil sands market in Alberta,” said Guy Nelson, CEO of Empire industries. “Our partnership with the Athabasca Chipewyan First Nation in Ft. McMurray positions us uniquely in one of the fastest growing industrial markets in North America. Empire also plans to introduce very competitive, high quality fabricated steel into the Alberta industrial market from our joint venture in China.”
“Empire Iron Works started its operations in Winnipeg in 1958 and has a very impressive track record working in this regional market,” stated John Leder, President of Supreme Group. “These facilities in Manitoba and Ontario have a long history of producing high quality fabricated steel and will fit well with our other fabrication facilities across western Canada.”
Proceeds of this transaction will be used to pay down bank debt as well as strengthen liquidity.