Tornado Completes Strategic Acquisition of CustomVac and Amends TD Credit Facility

CALGARY, Alberta, May 15, 2025 (GLOBE NEWSWIRE) -- Tornado Infrastructure Equipment Ltd. (“Tornado” or the “Company”) (TSX-V: TGH; OTCQX: TGHLF), a leading manufacturer of specialized infrastructure and excavation equipment, is pleased to announce the closing of the acquisition (the “Acquisition”) of all the issued and outstanding shares in the capital of Custom Vacuum Services Ltd. (“CustomVac”) from 2624795 Alberta Ltd., an arm’s length party (the “Vendor”), pursuant to a share purchase agreement signed and dated today, among the Company, CustomVac and the Vendor, for an aggregate purchase price of $28,000,000 (the “Purchase Price”) paid in cash, subject to customary closing adjustments. CustomVac was founded in 2000 and is located in Nisku, Alberta. CustomVac manufactures and services truck-mounted and semi-trailer mounted vacuum equipment, both for the oil and gas, and the utilities, excavation, environmental and safety sectors in Canada.

“This acquisition is a key component of Tornado’s broader strategy to expand its footprint across the infrastructure equipment sector. We are actively engaged in identifying and acquiring high-quality businesses that complement and enhance our existing product portfolio. This approach underscores Tornado’s commitment to delivering long term value through innovation, diversification, and disciplined growth,” said Brett Newton, President and CEO of Tornado.

“As we continue to grow our footprint in infrastructure equipment, we are consistently seeking exceptional companies like CustomVac that align with our strategic vision and can serve as synergistic bolt-on acquisitions to our core product offerings,” added Mr. Newton.

Highlights of the Acquisition

• Compelling Synergies: The acquisition presents significant synergy opportunities, including cross-selling across both customer bases, leveraging Tornado’s established sales channels in Canada and the United States to drive increased sales of CustomVac products, and utilizing Tornado’s established and scalable supply chain to reduce production costs and improve efficiency.
• New Product Line for Tornado: CustomVac’s product line includes units that are designed for the transportation of dangerous goods, which will expand Tornado’s product offering to its customers.
• Delivers Attractive Financial Benefits: The Acquisition is expected to be profitable and immediately accretive to Tornado. CustomVac’s unaudited trailing 12-month gross profit was $9,580,000 and had assets of $11,592,000 as at January 31, 2025. The Company is not assuming any long-term debt in connection with the Acquisition.
• Fully Funded: Purchase Price was fully funded by a combination of cash on hand and the drawdown of the New Term Loan (described below) under the TD Facility (described below).

The Acquisition qualified as an "Exempt Transaction" within the meaning of TSX Venture Exchange Policy 5.3 and, other than the foregoing, terms of the Acquisition were not disclosed. No finders’ fees were paid in connection with the Acquisition.