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Press Release February 2020

2020-02-25

DEL ENTERS INTO AGREEMENT WITH DRIVE PRODUCTS FOR THE
ACQUISITION OF DEL’S CANADIAN BUSINESS AND CERTAIN OTHER ASSETS
 
NEWMARKET, ON – February 25, 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”).
 
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.
 
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.

“We are excited to have the DEL business merge with Drive Products,” said Greg Edmonds, Chief
Executive Officer of Drive Products. He continued, “DEL has a long history of excellent
workmanship and customer service, and we believe that bringing the DEL brand within the Drive
Products family adds a highly complementary business that further diversifies the broad range of
products, services and solutions that Drive Products delivers to our wide Canadian customer base.”

Douglas Lucky, Chief Restructuring Officer of DEL, said, “We will work closely with Drive
Products to ensure a smooth transition, while also completing open work for our customers
pending the closing of the Transaction. DEL is also in the process of advancing sale alternatives
in respect of our business, branches and assets which are outside the scope of the Transaction.”

DEL has continued to operate in the normal course to achieve strong financial performance during
its CCAA restructuring proceedings and the advancement of its court-approved sale and
investment solicitation process. As a result of this process, the Company has identified the
Transaction, combined with the sale of its residual assets and completion of certain orders prior to
the completion of the Transaction, to represent the best alternative for the Company and its
stakeholders in the circumstances.

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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