BURNABY, BC, Oct 1 /CNW/ - GLENTEL Inc. effective today completed the previously announced purchase of 81.5% of Utah-based Diamond Wireless, LLC, a Verizon Premier Retailer operating 132 stores in 11 U.S. states stretching from Washington to Texas, primarily in malls.
"We are delighted to welcome the Diamond Wireless team of over 750 associates to our GLENTEL team and to support them in growing Diamond throughout the United States, led by their president and co-founder, Troy Crosland, and his leadership team," stated Tom Skidmore, GLENTEL's President and Chief Executive Officer. "We look forward to our investment in Diamond Wireless, LLC contributing significant sales and earnings to our company in the current quarter and beyond. With the purchase of Diamond, GLENTEL has now created its U.S. Retail Division."
Diamond is opening an additional 6 stores, for a total store count of 138 in 2010, and in 2011 plans to open 40 mall-based stores. GLENTEL now operates 412 retail stores, with its 280 Canada Retail Division stores of WIRELESSWAVE / WAVE SANS FIL (120), Tbooth wireless / la cabine T sans fil (82), and WIRELESS etc. / SANS FIL etc. (78), and its 132 U.S. Retail Division stores of Diamond Wireless doing business as VERIZON Wireless - Premier Retailer.
The total purchase price was US $50.45 million, financed by a fixed-term bank facility of US $35 million and by US $15.45 million from GLENTEL's short-term investments.
About GLENTEL
GLENTEL (TSX: GLN) is a leading provider of innovative and reliable telecommunications services and solutions in Canada and the United States. Founded in 1963 and headquartered in Burnaby, BC, GLENTEL comprises three operating divisions - U.S. Retail, Canada Retail, and Business - that service thousands of consumers and commercial communications customers. The company operates more than 290 locations across Canada located in retail malls, Costco Wholesale stores, and business centers, as well as 132 retail locations in the United States. To its business and government customers, GLENTEL offers wireless service, rental equipment, satellite and terrestrial network systems, tower sites and wireless asset monitoring. As the largest multi-carrier mobile phone retailer in Canada, it offers a choice of network carrier and wireless device or phone to Canadian consumers. GLENTEL operates its business under the trading names Glentel Wireless, WIRELESSWAVE, WAVE SANS FIL, Tbooth wireless, la cabine T sans fil, WIRELESS etc. and SANS FIL etc., and Diamond Wireless - Verizon Premier Retailer in the U.S.
Forward-Looking Statements
Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third-party manufacturing, managing rapid growth, limited intellectual property protection, and other risks and uncertainties described in GLENTEL's public filings with securities regulatory authorities.
NO STOCK EXCHANGE, SECURITIES COMMISSION, OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
To secure a copy of GLENTEL's annual report or for additional information visit www.glentel.com or www.sedar.com.
For further information:
Investor Relations Contact: Jas Boparai, Chief Financial Officer GLENTEL Inc. 604.415.6500 [email protected] |
Media Contact: Shafiq Jamal, VP James Hoggan & Associates 604.739.7500 [email protected] |
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