Toronto, Ontario, January 31, 2022 – Dexterra Group Inc. (“Dexterra Group” or the “Company”) (TSX: DXT.TO) announces the closing of the acquisition of privately owned TRICOM Facility Services group of companies (“TRICOM”).
TRICOM delivers contract janitorial and associated building maintenance services and supplies custodial equipment and consumables to clients in major centres across Canada.
“We are excited to close this deal that is very much aligned with our strategic plan to add scale to our integrated facilities management business unit,” says John MacCuish, Chief Executive Officer, Dexterra Group. “We look forward to welcoming and onboarding their clients and people to the Dexterra family.”
This acquisition brings the Company several key contracts and client relationships, including a small footprint in the United States. The purchase price is $19 million, which will be financed through bank lines and has performance-based incentives tied to results over the next two years. TRICOM’s book of business is expected to exceed $35 million post pandemic and increases Dexterra’s presence in the hospitality, entertainment and transit sectors.
Ian Hodge, President, TRICOM, comments, “We are eager to join the Dexterra family to consolidate our mutual expansion plans, while continuing to provide superior service to TRICOM’s valued clients.”
About Dexterra Group
Dexterra Group employs more than 7,500 people, delivering a range of support services for the creation, management, and operation of infrastructure across Canada. In 2021 Dexterra was named Canada’s Safest Employer in the Services Sector by Canadian Occupational Safety.
Powered by people, Dexterra Group brings best-in-class regional expertise to every challenge and delivers innovative solutions, giving clients confidence in their day-to-day operations. Activities include a comprehensive range of facilities management services, industry leading workforce accommodation solutions, innovative modular building capabilities, and other support services for diverse clients in the public and private sectors.
For further information contact:
Drew Knight, CFO
Head office: Airway Centre, 5915 Airport Rd., 4th Floor Mississauga, Ontario L4V 1T1
Telephone: (416) 767-1148
You can also visit our website at dexterra.com
Certain statements contained in this news release may constitute forward-looking information under applicable securities law. Forward-looking information may relate to Dexterra Group’s future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as “expected” or other similar expressions concerning matters that are not historical facts. In particular, statements regarding TRICOM’s book of business is a forward-looking statements. These statements are based on certain factors and assumptions, including expected growth, results of operations, performance and business prospects and opportunities regarding Dexterra Group, which Dexterra Group believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to Dexterra Group, they may prove to be incorrect. Forward-looking information is also subject to certain known and unknown risks, uncertainties and other factors that could cause Dexterra Group’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward- looking information, including, but not limited to: the ability to retain clients, renew existing contracts and obtain new business; an outbreak of contagious disease that could disrupt its business; the highly competitive nature of the industries in which Dexterra Group operates; reliance on suppliers and subcontractors; cost inflation; volatility of industry conditions could impact demand for its services; a reduction in the availability of credit could reduce demand for Dexterra Group’s products and services; Dexterra Group’s significant shareholder may substantially influence its direction and operations and its interests may not align with other shareholders; its significant shareholder’s 49% ownership interest may impact the liquidity of the common shares; cash flow may not be sufficient to fund its ongoing activities at all times; loss of key personnel; the failure to receive or renew permits or security clearances; significant legal proceedings or regulatory proceedings/changes; environmental damage and liability is an operating risk in the industries in which Dexterra Group operates; climate changes could increase Dexterra Group’s operating costs and reduce demand for its services; liabilities for failure to comply with public procurement laws and regulations; any deterioration in safety performance could result in a decline in the demand for its products and services; failure to realize anticipated benefits of acquisitions and dispositions; inability to develop and maintain relationships with Indigenous communities; the seasonality of Dexterra Group’s business; inability to restore or replace critical capacity in a timely manner; reputational, competitive and financial risk related to cyber-attacks and breaches; failure to effectively identify and manage disruptive technology; economic downturns can reduce demand for Dexterra Group’s services; its insurance program may not fully cover losses. Additional risks and uncertainties are described in Note 22 of the Corporation’s Consolidated Financial Statements for the years ended December 31, 2020 and 2019 contained in its most recent Annual Report filed with securities regulatory authorities in Canada and available on SEDAR at sedar.com. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Dexterra Group is under no obligation and does not undertake to update or alter this information at any time, except as may be required by applicable securities law.