Shred Tech Corporation Announces Completion of Refinancing
April 29, 2008
Cambridge, Ontario - April 29, 2008 - Shred-Tech Corporation ("Shred-Tech" or "the Company") is pleased to announce that it has completed a refinancing by The Bank of Nova Scotia. The proceeds were used to return capital to the Company's shareholders. Terms of the transaction were not disclosed. Shred-Tech was purchased in May 2004 by CAI Capital Management Co. - a Canadian private equity fund, and certain of the Company's senior management.
Shred-Tech is a leader in the engineering and manufacturing of high-speed, low-torque shredding equipment for information destruction. It designs, manufactures and markets three product and services lines: mobile document shredders, or document shredding trucks; processing shredders built for document shredding; and other information destruction such as computers and other electronic equipment.
Rob Glass, President and Chief Executive Officer said: "Shred-Tech is experiencing solid growth, particularly from the steady demand for mobile document shredding equipment in North America and increasingly in Europe, and through the introduction of new truck models and product lines. We feel comfortable in being able to return capital to our shareholders as well as to finance continued expansion."
Dino Fracassi of The Bank of Nova Scotia added: "We provided financing for the buyout of Shred-Tech and have been pleased with its financial performance over the past few years. In spite of challenging credit conditions and the difficult environment for Canadian manufacturers from the strengthening of the Canadian dollar, the Company has been able to pay down substantial amounts of debt as well as to finance growth."