Mosaic Capital Corporation Successful Sale of Ambassador Mechanical LP

CALGARY, Nov. 5, 2019 /CNW/ - Mosaic Capital Corporation ("Mosaic" or the "Company") (TSX–V Symbols: M and M.DB) announced today that it, along with its minority operating partner, has sold Ambassador Mechanical LP ("Ambassador") to an undisclosed third party.

Consideration to Mosaic for the unsolicited sale of Ambassador was approximately $15.0 million in cash, which has been initially used to reduce outstanding debt.  Mosaic now has approximately $35 million available on its acquisition credit facility that can be deployed into future investment opportunities. 

Mosaic generated a cash-on-cash internal rate of return of 20% and received, in distributions plus sale proceeds, a multiple of 2.5 times over its invested capital during the life of its investment in Ambassador.

Ambassador, a leading, multi-faceted mechanical contractor, was founded in 1991 and was one of Mosaic's longer-tenured partners after the Company acquired its majority equity interest from the founder in early 2012.

"We are pleased with the investment return profile and financial outcome of this transaction for our shareholders which includes the creation of incremental liquidity that can be re-deployed into accretive acquisition growth opportunities" stated Mark Gardhouse, President and CEO. "As we enter our annual budgeting and strategic planning process, we will renew our efforts to capture both organic and new acquisition opportunities which will provide the potential for meaningful growth next year".

ABOUT MOSAIC CAPITAL CORPORATION

Mosaic is a Canadian investment company that owns a portfolio of established businesses which span a diverse range of industries and geographies. Mosaic's strategy is to create long-term value for its shareholders through accretive acquisitions, long-term portfolio ownership, sustained cash flows and organic portfolio growth. Mosaic achieves its objectives by maintaining financial discipline, acquiring businesses at attractive valuations, performing extensive acquisition due diligence, utilizing optimal transaction structuring and working closely with subsidiary businesses after acquisition. 

Reader Advisory

Forward-Looking Statements

This news release contains forward-looking information and statements within the meaning of applicable Canadian securities laws (herein referred to as "forward-looking statements") that involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All information and statements in this news release which are not statements of historical fact may be forward-looking statements. The words "believe", "expect", "intend", "estimate", "anticipate", "project", "scheduled", and similar expressions, as well as future or conditional verbs such as "will", "should", "would", and "could" often identify forward-looking statements. Forward-looking statements included in this news release include but are not limited to:

• availability on the Company's acquisition line of credit;
• ability of the Company to capture organic and new acquisition growth opportunities;
• the potential for meaningful growth.

Such statements or information, if any, are only predictions and reflect the current beliefs of management with respect to future events and are based on information currently available to management. Actual results and events may differ materially from those contemplated by these forward-looking statements due to these statements being subject to a number of risks and uncertainties. Undue reliance should not be placed on these forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.

By their nature forward-looking statements involve assumptions and known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other things contemplated by the forward-looking statements will not occur. A number of factors could cause actual results to differ materially from the results stated in the forward-looking statements, including, but not limited to, risks related to: potential sale transaction post-closing adjustments; sale transaction representations and warranties provided; general economic and business conditions; the failure to realize the anticipated benefits of Mosaic's recent and future acquisitions; adverse fluctuations in commodity prices; competition for, among other things, capital, equipment and skilled personnel; the inability to generate sufficient cash flow from operations to meet current and future obligations; the inability to obtain required debt and/or equity capital on suitable terms; competition for acquisition targets; adverse weather conditions; seasonality and fluctuations in results; and limited diversification of Mosaic's subsidiaries. Should any of the risks or uncertainties facing Mosaic and its subsidiaries materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance, activities or achievements could vary materially from those expressed or implied by any forward-looking statements contained in this news release.

Although Mosaic believes that the expectations represented by any forward-looking-statements contained herein are reasonable based on the information available to them on the date of this news release, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. Any forward-looking statements herein contained are made as of the date of this press release and Mosaic does not assume any obligation to update or revise them to reflect new information, events or circumstances, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Mosaic Capital Corporation