Horizon North Logistics Inc. Announces Completion of Acquisition of NRB Inc.

Horizon North Logistics Inc. (“Horizon North” or the “Corporation”) announced that the Corporation has completed its previously announced acquisition (the “Acquisition”) of NRB Inc. (“NRB”) and provided an update on hospitality projects and accessibility initiatives within its Modular Solutions business.

Acquisition of NRB

The previously-announced Acquisition of NRB, a full-service modular construction provider based in Grimsby, Ontario, has been completed. “The integration of these two companies leverages the stability of our balance sheet to immediately provide Horizon North with manufacturing capacity in Southern Ontario, a significant next step in our pan-Canadian growth strategy,” says Rod Graham, President and Chief Executive Officer of Horizon North. “Like our locations in Kamloops, Aldergrove and Calgary, the NRB facility is strategically located near major transportation routes and a diverse labour pool. That location, coupled with an expanded product portfolio and the unified expertise of our two teams, should have us well-situated to provide industry-leading, turn-key modular solutions across the country.”

“The expansion of our product portfolio is a key aspect to this integration and Horizon North believes it is well-positioned to capture multiple end markets in modular construction,” says Joseph Kiss, President of Horizon North’s Modular Solutions business. “Horizon North’s expertise in wood-frame modular structures will expand east, providing solutions for affordable social, student, senior and First Nations housing, in addition to hotels, commercial space and single and multi-family homes. At the same time, NRB’s expertise in steel-frame, non-combustible modular structures will expand west, including facilities for health care, recreation, and education purposes, as well as retail, hospitality and utilities structures.”

“2019 marks our fortieth year in business and we look forward to the next chapter of NRB’s journey with Horizon North,” say Bob and Craig McNeil of NRB. “This integration will expand our capabilities and expertise and introduce the brand to customers across Canada, meaning continued employment for those who are part of our NRB family. For the past 40 years, we have been guided by values of teamwork, professionalism, innovation and integrity, and those commitments to customers will not change.”

Modular Hospitality Projects and Accessibility Initiatives

Horizon North’s Modular Solutions business has continued development of its hospitality offerings. A design-build project for Hostelling International Canada in Jasper, Alberta is expected to be completed in May 2019. The Corporation was also recently awarded a design-build project from a repeat client for a five-storey, select service modular hotel in Prince George, British Columbia, with anticipated completion in Q4 2019. The Corporation has also committed to the design and construction of a 119-room, five-storey modular Marriott Fairfield Inn & Suites in Kitimat, British Columbia, with anticipated completion in late 2019. This hotel will be located on the Corporation’s Crossroads land parcel in Kitimat, which will support development in the region, including the LNG Canada project.

“Continued growth of our Modular Solutions business will be predicated on diversity in our offerings and repeat business from satisfied clients. These projects are important for our portfolio,” says Rod Graham, President and Chief Executive Officer of Horizon North. “In particular, the opportunity to expand our hospitality offering to Marriott International’s modular hotel development program is key to positioning Horizon North as a leading provider of modular solutions which can reduce build times and may generate a quicker return on investment for hoteliers.”

Horizon North is also working with the Rick Hansen Foundation (the “Foundation”) to improve the accessibility of the Corporation’s modular built projects. The Foundation works to improve the accessibility of commercial, institutional and multi-unit residential buildings in Canada for those struggling with mobility and other issues. Horizon North is developing an Accessibility Design Criteria Manual with support from the Foundation that is expected to optimize the Corporation’s consideration of building accessibility in its design process and achieve Rick Hansen Foundation Accessibility Certification™ (the “Certification”) on targeted Horizon North projects across Canada.

“Accessibility is an important consideration in construction and Horizon North is committed to expanding our accessibility solutions offerings and expertise,” says Joseph Kiss, President of Horizon North’s Modular Solutions division. “Through this Certification, we look forward to our future modular projects offering the necessary requirements for the one in seven Canadian adults who are struggling with mobility, hearing or vision disabilities to enjoy the spaces we create.”

“Congratulations to Horizon North for their commitment in utilizing our Certification to achieve a level of excellence in accessibility and inclusion in their modular projects across Canada,” says Rick Hansen, Founder of the Rick Hansen Foundation. “When we move beyond building codes and apply the principles of Universal Design, we are creating communities and spaces that are inclusive to all. As more organizations like Horizon North take this kind of leadership, we normalize accessibility in the built environment.”

About Horizon North

Horizon North is a publicly listed corporation (TSX: HNL.TO) providing a full range of industrial, commercial, and residential products and services. Our Modular Solutions business integrates modern design concepts and technology with state of the art, off-site manufacturing processes; producing high quality building solutions for commercial and residential offerings including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. Our Industrial Services business supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers in numerous sectors, anywhere in Canada.

About NRB

NRB is a successful, customer-driven manufacturer of quality modular buildings and supplier of related products and services. NRB has served the needs of the institutional, industrial, retail and commercial markets since 1979. From innovative design engineering through to off-site fabrication in our controlled environment to final on-site completion, NRB builds modular buildings of impressive design, finish and performance. NRB’s projects range in size and scope, and include applications in the educational, retail, commercial, health care, industrial and institutional construction markets.

Contact:

Scott Matson – Senior Vice President Finance & CFO – (403) 517-4654

Source: Horizon North Logistics Inc.