XPEL To Acquire Canadian Company
XPEL TO ACQUIRE CANADIAN COMPANY
– Largest Paint Protection Product Dealer in XPEL Network –
– Premier Window Tint Provider in Western Canada –
– Double-Digit Revenue Growth with Net Income Profitability –
SAN ANTONIO, TEXAS, May 24, 2007…XPEL Technologies Corp. (TSXV: DAP.U) announced today the signing of a non-binding letter of intent to acquire 100% of the stock of both Calgary, Alberta-based Shadow Shield and Shadow Tinting Ltd. (“Shadow”). Founded in August of 1999 by owner operator Mr. Nuno Ferreira, Shadow is an extremely successful paint protection and window tint film training, installation, and distribution operation serving Western Canada. Shadow is an authorized 3M Distributor and has been designated a 3M Canada Training Facility of choice. Additionally, Shadow recently began efforts to provide vehicle protection to large operator-owned fleets within its market area. Shadow is projected to contribute approximately US$3,000,000 to XPEL’s top line revenue, along with approximately US$400,000 of positive net income during fiscal 2007.
XPEL’s Chief Executive Officer, Steven J. McAuley, stated, “This is a great opportunity for us to combine the rapidly growing and profitable business of Shadow into XPEL’s operations. Shadow’s financial performance folds nicely into our income statement and balance sheet, and will undoubtedly give us greater momentum for growth. We believe Shadow will sustain compounded double-digit revenue growth and positive net income performance for the foreseeable future, and Shadow owner Nuno Ferreira will be named as President of XPEL’s newly formed and wholly owned Canadian subsidiary. He is a professional operator and highly recognized industry expert. Mr. Ferreira brings us market savvy and knowledge for not only improving our reach into the Canadian and North American marketplace, but also other newly established market opportunities around the world.” Mr. McAuley further added, “As Mr. Ferreira and his team continue their rapid growth in both retail and commercial automotive segments with paint, headlight and tint protection products, we believe their efforts will also assist us in accelerating brand awareness and growth of XPEL’s recently announced SmartShield product offering for light duty trucks. Unquestionably, the road debris conditions in Canada with rocks and salt make XPEL’s entire product line-up ideal for preventative and restorative vehicle protection.”
The contemplated transaction as described herein is subject to final due diligence review, the execution of a definitive agreement, and regulatory approval by the TSX Venture Exchange and any other entities maintaining jurisdiction.
XPEL Technologies Corp. is the worldwide leader in the electronic delivery of automotive aftermarket products, utilizing the Internet as an integral component for its design, manufacturing, distribution and customer relationship strategies. The Company’s DAP software utility offers Dealers the industry’s most efficient and productive tool set to better serve customers with “best-in-class” solutions in real time. XPEL has clear advantages over the competition through its expansive proprietary library of installation-friendly paint and headlight protection and window tint products, coupled with unique web-based remote manufacturing and distribution software, superior installation-training curriculum and world-class facilities, with established and growing sales channels.
Certain statements contained herein such as: “Shadow’s financial performance folds nicely into our income statement and balance sheet, and will undoubtedly give us greater momentum for growth” and “We believe Shadow will sustain compounded double-digit revenue growth and positive net income performance for the foreseeable future,” are considered “forward-looking statements.” These types of statements are based upon the belief of the Company’s management, as well as assumptions made beyond information currently available to the Company’s management. Because “forward-looking statements” are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, price competition, the inability to obtain additional capital, loss of key personnel, unavailability of leased facilities, technological changes, service interruptions, equipment failures, customer attrition, general economic conditions, relationships with vendors, government supervision and regulation, changes in industry practices, and other factors.
The TSXV has not reviewed and does not accept responsibility for the adequacy and accuracy of this information.
Chief Executive Officer
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)