Ivaco Inc. announced that Ivaco, Ivaco Rolling Mills LP, and Ifastgroupe and Co., LP have each entered into a binding agreement with a wholly owned subsidiary of The Heico Companies, LLC for the sale of their respective businesses to Heico. The aggregate purchase price for the three businesses is $375 million, including certain assumed liabilities.

The current view of Ivaco's management and Board of Directors is that Ivaco's shareholders, including the holders of its preferred shares, will not receive any value for their shares as a result of these transactions.

Ivaco filed for protection under the Companies' Creditors Arrangement Act (CCAA) on September 16, 2003, citing difficult market conditions for the entire North American steel industry, which included the high Canadian dollar, U.S. anti-dumping duty deposits and higher input, energy and transportation costs. Ivaco will seek court review and approval of the asset sale transactions shortly and, subject to obtaining court approval, expects that the closing of the sale transactions will occur by year-end. The closing is subject to certain closing conditions being met by that time.

"This is a positive result for the company, its employees and customers," said Gordon Silverman, CEO. “Heico will bring value to the continuing business and has indicated that it is expected to continue the company’s strategy of supplying high quality markets, and even expanding its presence in these markets." Randall Benson, Chief Restructuring Officer, added that, “Ivaco’s restructuring process is now nearing completion. We are confident that this transaction represents a fair and balanced solution for all those involved, as it maximizes the benefits to be received by all stakeholders including creditors, employees, customers and suppliers.”

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Heico is a U.S. based portfolio company with an established track record in acquisitions of companies involved in various industries worldwide, including steel, telecommunications and plastics. Heico has interests in several complementary businesses, including Davis Wire Corp. and National Standard Co.

Ivaco, a Canadian corporation, is a leading North American producer of steel, fabricated steel products and precision machined components. Ivaco's modern steel operations include Canada's largest rod mill, which has a rated production capacity of 900,000 tons of wire rods per annum. In addition, its fabricated steel products operations have a rated production capacity in the area of 350,000 tons per annum of wire, wire products and processed rod, and over 175,000 tons per annum of fastener products.