M&A Activity • Mar 11, 2015
M&A Activity
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PRESS RELEASE Airport City, Israel, March 8th, 2015
UNITRONICS (1989) (R"G) LTD.
Airport City, Israel – March 8th, 2015- Unitronics published the attached Immediate Report pursuant to the requirements of the Israeli law, in connection with signing of Binding Letter of Intent ("BLOI") for the design, supply and construction of an automated parking facility for a client in Canada.
Unitronics (1989) (R"G) Ltd. is an Israeli company that engages, through its Products Department, in the design, development, production, marketing and sale of industrial automation products, mainly Programmable Logic Controllers ("PLCs"). PLCs are computer-based electronic products (hardware and software), used in the command and control of machines performing automatic tasks, such as production systems and automatic systems for industrial storage, retrieval and logistics. The Company also engages, through its Systems Department and/or its subsidiaries, in the design, construction and maintenance services in the framework of projects for automation, computerization and integration of computerized production and/or logistics systems, mainly automated warehouses, automated distribution centers and automated parking facilities. The Company's PLCs are distributed by over one hundred and forty distributors (and a wholly owned US subsidiary) in approximately fifty countries throughout Europe, Asia, America and Africa. The services of the Systems Department are provided to customers in Israel and also outside Israel.
This press release contains certain forward-looking statements and information relating to the Company that are based on the beliefs of the Management of the Company as well as assumptions made by and information currently available to the Management of the Company. Such statements reflect the current views of the Company with respect to future events, the outcome of which is subject to certain risks and other factors which may be outside of the Company's control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described herein as projected, anticipated, believed, estimated, expected or intended.
The Company herewith reports that on March 4th, 2015 a Canadian customer unrelated to the company or its controlling shareholders, Prestige Properties Corp (the "Customer") has signed with the Company (through its wholly owned second tier subsidiary incorporated in the United States, Unitronics Systems Inc.) a Binding Letter of Intent (BLOI) for the construction of an Automated Vehicle Storage and Retrieval System ("AVSRS") of an 1400 parking places for such Customer in Calgary, Alberta, Canada (the "Project"), the largest automated parking facility in North America for one of the world's premier hotel chains.
According to the BLOI, the Customer will pay the Company for the Project an estimated aggregate sum of USD approximately 24,000,000 (app. NIS 96,000,000).
According to the BLOI the final agreement between the parties shall be based upon agreed versions of a standard agreement proposed by the Design-Build Institute of America which shall determine, inter alia, the schedules, milestones and payment terms.
The BLOI is subject to Customer receiving the Project development permit from the applicable authorities and implementation of AVSRS, the Company estimate that the implementation of the Project is expected to occur in 2015.
The Company will explore insurance options for the Project in the amount of Fifty Million Canadian Dollars (CAD) (\$50,000,000) (app. NIS 160,000,000). Following such exploration, the Company and Customer will discuss the required coverage and its associated costs.
Unitronics has developed an advanced proprietary automated car parking solution comprising an array of automated robots, elevators and command-and-control software designed to enable the automated, fast and efficient storage and retrieval of cars, on average, within approximately two minutes (to store or retrieve a car). Overall, Unitronics' system is designed to enable up to threetimes more cars to be parked than a regular parking garage in the same space. Additionally, the Company believes that the technology it has developed offers for the first time, those advantages in a more cost effective than conventional parking for such projects, based on total costs for an entrepreneur.
Unitronics believes the benefits of its parking solutions include among other: savings in valuable real estate; environmentally friendly, low electricity consumption, reduced fuel emissions, and reduced noise and risk of groundwater contamination; reduced maintenance costs; and improved accessibility for people with disabilities. In addition, Unitronics' automated car park is designed to offer high personal and asset security for drivers using the parking facility.
The Project is added to the Company's expanding operations in the Automated Parking Solutions domain, which began in recent years in Israel, the U.S., Canada and other countries. At the date of this publication 18 parking projects are in various stages of construction. The total value under the terms of those contracts signed by the Company in the field of Automated Parking Solution, including the Project estimated at a total of NIS 170,000,000, of which NIS 21,000,000 were recognized, as published in the Financial Statements of the Company until the day of September 30, 2014.
Respectfully,
Unitronics (1989) (R"G) Ltd.
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