|Don Park Limited Parnership|
|TerraVest Income Announces Acquisition of an 80% Interest in the Business and Assets of Don Park Inc.
APRIL 1, 2005
VEGREVILLE, ALBERTA--(April 1, 2005) - TerraVest Income Fund (TSX:TI.UN) today announced that it has acquired an 80% interest in the business and assets of Don Park Inc., one of Canada's largest manufacturers and suppliers of heating, ventilation and air conditioning (HVAC) products. The Toronto-based business was founded in 1972.
TerraVest will invest $30.4 million for its interest in Don Park using existing financial resources and credit lines. Existing senior management of Don Park will retain the remaining 20%. In 2004, Don Park's revenues were $84 million and EBITDA was $7 million.
Don Park is one of Canada's largest sheet metal manufacturers, offering a complete line of quality residential and commercial air distribution products. Through its distribution channels, Don Park also sells gas venting systems and chimney liner components.
Don Park has five distinct business operating segments:
- Sheet metal product manufacturing: Don Park manufactures a complete line of sheet metal products at three Ontario plants for use in residential and commercial applications. Don Park markets widely in Canada through wholesalers, outside retailers such as Home Depot and its own retail system.
- Product distribution through store locations: The business operates 13 self-serve store locations in Ontario. Products are sold primarily to contractors and include a variety of its own manufactured products and others from third parties related to HVAC systems. A number of the stores also fabricate custom sheet metal products.
- Manufacturing of custom commercial ventilation products: Don Park operates Toronto and Atlanta facilities that manufacture custom ventilation products for industrial, commercial and institutional customers in both the retrofit and new construction markets.
- Manufacturer of fire sprinkler equipment: Don Park fabricates commercial fire sprinkler systems for commercial and industrial applications and distributes related products.
- Contract services: Don Park handles the majority of warehousing and logistics for the heating, air conditioning and hot water tank installation business in Ontario for Direct Energy Marketing Ltd.
Don Park has approximately 400 employees and operates 650,000 square feet of manufacturing and distribution space in 16 facilities. Most of its residential product sales are for remodel and replacement businesses. Further information can be obtained at the Company's web site:www.donpark.com.
TerraVest is a publicly traded income trust with a portfolio of diversified businesses and whose stated objective is to provide stable and increasing cash returns to its unitholders. The fund has increased its per unit distributions more than 20% since its inception less than 9 months ago. Its mandate is to build a diversified portfolio of 6-8 high quality, mid-sized companies over a 2-3 year period for outstanding growth in per unit distributions and income stability.