Diversified income trust TerraVest Income Fund announced that it has completed the purchase of an 80 percent interest in Beco Industries Ltd. Beco is the largest Canadian designer, manufacturer and importer of home textile products.
As a result of the accretive nature of the Beco acquisition, TerraVest's trustees approved a $0.05 increase in the annual distribution to $1.38 per Unit, effective with the distribution to be paid on January 15, 2006 to Unitholders of record on December 31, 2005. The Fund has increased distributions by 30% since it began operations 17 months ago.
TerraVest invested approximately $34 million for its interest in Beco, using existing financial resources and drawing down funds from its new $110 million debt facility. Beco was privately owned by Sydney, Alan and Richard Pinchuk. Richard and Alan represent the third generation of the family who founded the business in 1946. Richard and Alan, respectively CEO and President of Beco, along with two other senior managers, will hold a 20 percent minority interest.
From three manufacturing and distribution facilities in Montreal, the Company sells a wide variety of household textile products through retailers in Canada (60% of revenues) and the United States (40%). Its major customers include Walmart, Loblaws Superstores and Zellers in Canada, and Kohl's, Ross Stores, Meijer and Fred Meyer in the United States.
Richard Pinchuk, Beco's Chief Executive Officer stated that Beco places great importance on its ability to innovate for its customers. Combined with their accumulated expertise and experience in international sourcing and manufacturing textile products, they have been successful in meeting the ever-changing requirements of the marketplace.
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