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DEL Equipment Inc. and Drive Products Inc. merger

2020-02-27

 
FOR IMMEDIATE RELEASE                                                                 
 
DEL OBTAINS COURT APPROVAL FOR AGREEMENT WITH DRIVE PRODUCTS FOR THE ACQUISITION OF DEL’S CANADIAN BUSINESS AND CERTAIN OTHER ASSETS

NEWMARKET, ON – February 27, 2020 – Del Equipment Inc. (“DEL” or the “Company”) and Drive Products Inc. (“Drive Products”) announce that they have entered into a binding agreement pursuant to which Drive Products will acquire the majority of DEL’s Canadian business and associated assets (the “Transaction”), and today DEL obtained the approval and Vesting Order for the Transaction from the Ontario Superior Court of Justice (the “Court”).

Under the Transaction, Drive Products will acquire, among other things, all intellectual property rights and goodwill related to DEL's business, certain of DEL's rights and obligations in respect of pool stock, customer and supplier agreements across Canada, certain of DEL's inventory and supplies, and all of DEL’s owned equipment located at its Newmarket, Ontario branch. The Transaction will also see a portion of the Company’s workforce receive offers of employment from Drive Products.

DEL management and staff will now be working diligently together with Drive Products staff to provide a smooth transition of the business operations of DEL into Drive Products and DEL facilities across Canada. When all combined, Drive Products will have 13 facilities from Halifax to Vancouver, totaling 800,000 square feet across Canada, employing over 500 Canadians with good jobs.

The Transaction is subject to customary closing conditions, including approval by the Ontario Superior Court of Justice (Commercial List) in DEL’s proceedings under the Companies’ Creditors Arrangement Act (the “CCAA”).  Subject to the satisfaction or waiver of applicable conditions, the parties are working to complete the Transaction by the end of March 2020.

Please take a moment and visit both the Drive Products web site at www.driveproducts.com and the DEL web site at www.delequipment.com to truly get an clear understanding of how beneficial this merger is to the Canadian truck upfitting market.

Prior to and following the completion of the Transaction, DEL will continue to operate in the normal course. 
 
 
 
For further information, please contact:

Doug Lucky
Chief Restructuring Officer
Del Equipment Inc.
(416) 421-5851 x1169
 dlucky@delequipment.com

 
Paul Martin 
Chairman of the Board and Secretary 
Del Equipment Inc
(416) 421-5851 x1115 
pmartin@delequipment.com


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