Mobile Climate Control Announces Acquisition of Swedish Heating Systems Manufacturer.TORONTO -- Mobile Climate Control Industries Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :MCC (The Microelectronics and Computer Technology Corporation, Austin, TX) The first high-tech research and development consortium in the U.S., created in 1982 by leading companies within the electronics industry. .DB) ("MCC") announced today that it's Swedish operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. (MCC Europe AB) has completed the acquisition of all the shares of UWE UWE University of the West of England UWE Uml-Based Web Engineering UWE University Women of Europe Verken AB ("UWE"). UWE is a Swedish manufacturer of convection-based heating systems and related electronic products with operations in Sweden, Germany and Poland. UWE's business is similar to MCC's bus business and MCC has several customers in common with UWE. Synergies in the combined MCC Europe AB and UWE operations will start to be realized immediately and will increase as the two businesses are integrated. UWE has revenue of approximately $29 million and a strong EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become . The impact on MCC's earnings per share and cash flow per share is expected to be accretive in the current fiscal year. The purchase price of $6.5 million was made up of a $3.8 million down payment and $2.7 million due over 3 years. The down payment was financed with Swedish bank debt. The future payment of the purchase price and the repayment of the Swedish bank debt will be financed with cash flow from UWE. The Company will be filing a Business Acquisition Report with more details in the near future. |
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