BURNABY, BC, Glentel has completed a 100% share, $83.3 million purchase of Connecticut-based Automotive Technologies (ATI) which operates Wireless Zone, a 428-store franchise system in the United States that sells Verizon Wireless products and services.
"I am pleased to announce the successful acquisition of ATI, and to welcome ATI's employees and Wireless Zone's franchisees to the Glentel family," stated Tom Skidmore, Glentel's President and Chief Executive Officer. "The acquisition of Wireless Zone increases our already-established US presence, and with limited geographic overlap will complement the corporate stores of Diamond Wireless, one of six exclusive Verizon National Premium Retailers. The addition of ATI brings the total number of locations operated by Glentel in Canada, Australia, and the United States to more than 1,180."
Wireless Zone is also one of the six exclusive Verizon Wireless National Premium Retailers, operating 409 franchised and 19 corporate stores in 28 U.S. states. As part of the share purchase agreement, key members of senior management will be subject to employment agreements, and for certain consideration will be provided with share equivalent rights in ATI, which include put and call provisions for an aggregate total of 4.2% of ATI's distributed operating profit.
Glentel funded the acquisition through a $22.3 million of cash and a $61.0 million 5-year syndicated senior credit facility. The final purchase price is subject to a final working capital adjustment.
