Livingston acquires U.S. air-sea
broker and forwarder, Osowski & Co. Int'l
FOR IMMEDIATE RELEASE
Attention Business Editors
April 1, 2003
Toronto, Canada - Livingston International, Inc., a wholly
owned U.S. subsidiary of Livingston International Inc., has acquired
100 per cent of the shares of Osowski & Co. International, Ltd.
(Osowski), a U.S. air-sea broker and forwarder based in Chicago,
Illinois, Livingston International CEO Peter Luit announced today.
Livingston is owned by the Livingston International Income Fund,
which trades on the Toronto Stock Exchange (TSX) under the symbol
The full purchase price will depend on the results of the acquired
business over the next three and a half years. The initial payment
was financed by a draw down under Livingston’s current credit facility,
which was amended for such purposes, and the balance will be paid
on an earn-out basis, subject to meeting certain client retention
targets. This transaction is expected to be immediately accretive
Osowski is a non-asset-based customs broker and freight forwarder
and has annual net revenues of approximately US $1.4 million, earnings
before taxes in 2002 of US $175 thousand and normalized EBITDA for
2002 (see note below) of US $375 thousand. Osowksi principal, Ray
Osowski, will continue to run the operations as Director, Client
Services. The business will be integrated over the next three to
six months with Livingston’s existing U.S. brokerage operations.
This transaction increases the number of staff in Livingston’s U.S.
business by 15 people.
This acquisition is part of Livingston’s growth strategy to expand
its customs brokerage and freight forwarding business. It provides
Livingston’s current 13,000 clients with an additional service offering
in the ever-growing U.S. market.
Note: While EBITDA is not a recognized measure under Canadian
generally acceptable accounting principles (GAAP), management believes
it to be a useful supplemental measure. EBITDA should not be construed
as an alternative to net income as an indicator of performance or
to cash flows. Livingston’s method of calculating EBITDA may differ
from other companies’ and may not be comparable to measures used
by other companies.
Livingston International Income Fund is a trust that holds the
securities of Livingston International Inc., which is Canada’s leading
customs broker and trade-related services company facilitating two-way
trade between the United States and Canada. Based in Toronto, Ontario,
the company has over 70 offices and over 1650 employees located
at key border points and other strategic locations across Canada
and the United States. (30)
For more information, contact:
Vice-President, Public Affairs
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