WINNIPEG, March 1, 2012 –Empire Industries Ltd. (TSX-V: EIL) today announced it has divested its KWH Constructors and Somerset Engineering business units for $1.4 million dollars. Consideration for the transaction was effected through an exchange of Empire promissory notes which were originally issued to the purchasers as part of the original acquisition of KWH/Somerset by Empire in 2007.
This divestiture is part of the company’s plan to reduce its investment in domestic steel fabrication and erection outside of Alberta and to deploy more of its resources towards expanding its engineered products businesses.
This transaction will result in a gain of approximately $1.3 million, which will be recorded in Empire’s first quarter 2012 financial statements.