GL&V's Pulp And Paper Group Acquires Montreal Manufacturer

Montreal, Canada — Groupe Laperrière & Verreault Inc. that it has acquired the principal assets of KanEng Industries Inc. ("KanEng") and of KanEng-Deltec Inc., located in the Montreal, Quebec region. KanEng specializes in the manufacture of high-turnover components (consumables) for paper machines, mainly doctoring systems, along with showering systems, heating and cooling systems, dryer drainage systems and other related equipment. Founded in 1983, KanEng achieves annual sales of approximately $5 million, a significant proportion of which is in the aftermarket. Primarily serving North American paper manufacturers, it also derives revenues from certain licensed overseas manufacturers as well as through sales agents in some 20 countries. KanEng's operations will be integrated into GL&V's existing business. This acquisition, like the previous acquisition of Perplas Ltd. completed at the beginning of fiscal 2006, is consistent with the Pulp and Paper Group's strategy aimed at broadening its selection of value-added, high-turnover products in order to strengthen its position in the aftermarket, especially in North America and Europe. "It will also give us the opportunity to market these new products through GL&V's worldwide network," indicated Richard Verreault, GL&V's President and Chief Operating Officer.

SOURCE: Groupe Laperrière & Verreault Inc.