CANADA-based Exco Technologies Limited announced that it has signed a definitive agreement with Automotive Leather Company Group Limited (ALC), in a cash and stock deal worth US$25 million.
Basing on the terms of the definitive agreement, subject to receipt of applicable regulatory approvals and other customary closing conditions, the shareholders of ALC, a major supplier of leather interior trim to BMW and other German automakers, will receive approximately US$17.2 million in cash and the issue from treasury of 973,895 Exco shares. Exco’s cash contribution will be funded primarily through the use of its operating credit facility which will be increased to accommodate the cash payment amount.
The closing is expected to occur in the second quarter of fiscal 2014.