XPEL Acquires Parasol Canada
XPEL ACQUIRES PARASOL CANADA
Leading Distributor of Paint Protection and Window Tint Products in Canada
SAN ANTONIO–(BUSINESS WIRE)–XPEL Technologies Corp. (TSXV:DAP.U), a global supplier of automotive paint and headlamp protection films, today announced that it has acquired Parasol Canada, a distributor of paint protection and window tint products for the Canadian market.
Parasol, founded in 2009, is headquartered in Terrebonne, a suburb of Montreal, with a distribution office in Calgary. Parasol has hundreds of independent installers and automobile dealerships as customers who are serviced by sales representatives in key markets throughout Canada. In addition to supplying customers with paint protection film, automotive window tint and installation tools, Parasol also provides extensive installation training.
Mr. Ryan Pape, President and Chief Executive Officer of XPEL, said, “This acquisition is in line with our strategy to get closer to our end customers, particularly in key international markets. Parasol Canada is a profitable business with a successful management team who will remain with the company. The acquisition allows us to gain a dedicated Canadian sales force, add to our portfolio of products, gain margin and expand our proven U.S. marketing initiatives into Canada, where we believe there is significant opportunity for growth as we integrate under the XPEL brand. Furthermore, Parasol Canada brings with it a five-year agreement and five-year renewal option to exclusively supply paint protection film and window tint to the 79 locations that comprise the Protex Paint Protection and Pelti Window Film franchise groups.”
A majority of Parasol Canada’s revenue is derived from the sale of XPEL products.
The acquisition price of CAD$4.8 million was funded by US$1.9M in new borrowing from the Company’s primary lender, The Bank of San Antonio and a five-year, interest-free seller’s note. XPEL acquired inventory and receivables of approximately CAD$1.5 million as part of the purchase price.
The acquisition of Parasol Canada was completed by the transfer of all of Parasol Canada’s assets to a new subsidiary and the acquisition of all of the shares of the new subsidiary by XPEL Canada Corp., XPEL’s wholly owned Canadian subsidiary.
Mr. Pape continued, “We are focused on expanding our geographical reach and increasing our customer base to drive revenue growth. Canada is our largest international market, and this acquisition enhances our presence there as we look to continue to grow market share.”
About XPEL Technologies Corp.
XPEL leads the industry in designing, manufacturing and distributing high-performance automotive paint and headlamp protection film technologies. Using XPEL’s propriety software and patented materials, our professional design team develops products that deliver the ultimate in vehicle protection, meeting the demands of a broad range of makes and models. With more than 70,000 vehicle-specific applications and a global network of trained installers, XPEL is dedicated to exceeding customer expectations in providing high-quality products, customer service and technical support. XPEL Technologies Corp. (TSXV: DAP.U) is publicly traded on the TSXV Exchange. Visit www.xpel.com for more information.
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