Cedar Group acquires Groupe MIL.MONTREAL--(BUSINESS WIRE)--April 25, 1996--Cedar Group Inc.'s (NASDAQ/NMS: CGMV); VSE See DOS/VSE. VSE - Virtual Storage Extended : CGM (1) (Computer Graphics Metafile) An ISO/IEC standard format for 2D graphics images introduced in 1987. Primarily a vector graphics format for technical illustrations and geophysical visualizations, CGM also supports raster graphics and text. ) confirmed today that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Cedar Group (Canada) Inc. has acquired from Societe Generale de Financement ("SGF SGF Svenska Golfförbundet (Swedish Golf Federation) SGF Société Générale de Financement (Quebec, Canada) SGF Smart Game Format SGF Simulated Gastric Fluid ") 100% of the equity of Group MIL Inc. for $1.00. SGF has assumed all current and contingent encumbrances and liabilities as of the date of closing, including accumulated working capital deficiencies. In addition, by May 15, 1996, SGF will invest in a further C$25 million to upgrade facilities and contribute to working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. over the next two years. Cedar has put in place an overall business development plan to increase MIL's industrial and naval capability on a global scale. This five-year plan Five-Year Plan, Soviet economic practice of planning to augment agricultural and industrial output by designated quotas for a limited period of usually five years. will include the participation of SGF who has agreed to contribute up to 25% of the investment in the development plan over the period and up to a maximum of C$25 million. Groupe MIL Inc. has three subsidiaries: o MIL Davie Inc., founded in 1829 is Canada's oldest and largest shipbuilding and ship repair facility and has in excess of 1,000,000 spare feet of manufacturing space fabricating major industrial components for the energy, pulp and paper and petro-chemical sectors. o Intermodal Inc. is a designer and a manufacturer of road-rail interchangeable systems systems, a recently developed proprietary technology which provides significant economic and logistic advantages to the surface transportaion industry. o MIL Systems, the engineering division located in Ottawa, Canada, classified ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 and specializing in advanced ship design software, naval systems, computer aided logistic and global telecommunications. Cedar chairman, Michel L. Marengere stated, "The combined production and engineering capability of Groupe MIL and of Dominion Bridge Inc. provides Cedar Group Inc. with the most significant industrial manufacturing and fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. facility in Eastern North America. Cedar Group intends to continue the existing shipbuilding and ship repair activities for both commercial and military while extending MIL Davie's capabilities to the manufacturing of offshore platforms, supply vessels and large scale container handling systems." Cedar's president, Nicolas Matossian, commenting on the synergies within the Cedar Group indicated that: "Beyond the obvious fit with Dominion Bridge, the MIL facilities will also provide an increased capability and market reach in Asia, the Pacific Rim and North America to our recently acquired Australian subsidiary McConnell Dowell and to Steen Becker, Cedar's mechanical contractor." Cedar Group Inc., a Delaware corporation registered in Conshohocken, Pa., is an international engineering infrastructure, project management, aerospace and industrial metal transformation company with operations and projects in North America, Europe and Asia. This news release is neither approved nor disapproved by the Vancouver Stock Exchange Vancouver Stock Exchange (VSE) A securities and options exchange in Vancouver, British Columbia, (Canada), specializing in venture capital companies. Vancouver Stock Exchange See Canadian Venture Exchange (CDNX). . CONTACT: Cedar Group Inc. Eric Boyd, 514/634-3550 or Strategic Growth International Stan Altschuler/Richard Cooper, 516/829-7111 |
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