Friday, November 9, 2012

HRX - H��roux-Devtek announces special distribution of $5.00 per share (CAD 2.30)

Company: Heroux-Devtek
Stock Name: HRX
Amount: CAD 2.30
Announcement Date: 09/11/2012
Record Date: 16/11/2012

Dividend Detail:

LONGUEUIL, QC, Nov. 9, 2012 /CNW Telbec/ - H��roux-Devtek Inc. (TSX:
HRX), ("H��roux-Devtek" or the "Corporation"), a leading Canadian
manufacturer of aerospace products, is pleased to announce that its
Board of Directors has authorized a special cash distribution of $5.00
per share to be paid on December 19, 2012 (the "Payment Date") to
shareholders of record on November 20, 2012 (the "Record Date").

The special distribution follows the sale by H��roux-Devtek of
substantially all of its Aerostructure and Industrial Products
operations (the "Sale Transaction") at the end of August 2012. The
Board of Directors determined that the special distribution represents
an appropriate use of H��roux-Devtek's financial resources following the
completion of the Sale Transaction, as it provides shareholders with an
adequate return on their investment, while allowing the Corporation to
maintain a healthy financial position. The Board of Directors decided
to retain financial resources to ensure adequate funding of expected
capital and other investments and potential opportunities for future
growth, including strategic acquisitions. It will periodically review
H��roux-Devtek's cash position and capital requirements and evaluate
alternatives available to H��roux-Devtek to enhance shareholder value.

As the amount of the special distribution exceeds 25% of H��roux-Devtek's
current stock price, the Toronto Stock Exchange will require that the
shares trade on a "due bill" basis from the opening of trading on
November 16, 2012 to the close of trading on the Payment Date. This
means that sellers of shares during that period (i.e. sellers in trades
settled after the Record Date and entered into on or before the Payment
Date) will also sell to the purchasers their entitlement to the special
distribution. The shares will commence trading on an ex-distribution
basis (i.e. without an attached "due bill" entitlement to the special
distribution) from the opening of trading on December 20, 2012.

In order to implement the special distribution, the Board of Directors
has called a special shareholder meeting to be held on December 18,
to consider the adoption of a special resolution to reduce the
amount of the Corporation's issued share capital by $2.70 per share and
repay such amount on the Payment Date to shareholders of record on the
Record Date. The meeting will take place at 10 a.m. in the Salon
Printemps of the OMNI Mont-Royal Hotel, 1050 Sherbrooke Street West, in
the City of Montr��al, Qu��bec. The Board of Directors has also fixed the
Record Date as the record date to determine shareholders entitled to
receive notice and vote at the special shareholder meeting.

The Board of Directors has also declared a special cash dividend, to be
paid on the Payment Date to shareholders of record on the Record Date,
in an amount to be equal to the difference between $5.00 per share and
the per share amount of the capital reduction and repayment that will
be approved by the shareholders at the meeting, if any.

Therefore, if the capital reduction and repayment is approved at the
special shareholder meeting, the special cash distribution of $5.00 per
share ($160.0 million based on up to 32 million common shares) will be
composed of a capital reduction and repayment of $2.70 per share ($86.4
) and a special cash dividend of $2.30 per share ($73.6
), and a shareholder will, under certain circumstances, not be
subject to tax on the amount of the capital reduction and repayment or,
at the very least, be able to treat the amount of the capital reduction
and repayment that is in excess of the shareholder's cost base in the
shares as a capital gain. If the capital reduction is not approved at
the meeting, the special cash distribution will consist of a dividend
of $5.00 per share.

Full details of the special distribution and proposed capital reduction
and repayment, including a summary description of the principal
Canadian federal income tax considerations applicable to shareholders
in connection with the special distribution, will be included in the
management proxy circular that will be mailed to shareholders on or
about November 26, 2012.

About H��roux-Devtek Inc.

H��roux-Devtek Inc. (TSX: HRX) is a Canadian company specializing in the
design, development, manufacture and repair and overhaul of landing
gear systems and components for the Aerospace market. The Corporation
is the third largest landing gear company in the world, supplying both
the commercial and military sectors of the Aerospace market with new
landing gear systems and components, as well as aftermarket products
and services. Approximately 70% of the Corporation's sales are outside
Canada, mainly in the United States. The Corporation's head office is
located in Longueuil, Qu��bec with facilities in the Greater Montreal
area (Longueuil, Laval and St-Hubert); Kitchener and Toronto, Ontario;
as well as Springfield and Cleveland, Ohio.

Forward-Looking Statements

Except for historical information provided herein, this press release
may contain information and statements of a forward-looking nature
concerning the future performance of the Company. These statements are
based on suppositions and uncertainties as well as on management's best
possible evaluation of future events. Such factors may include, without
excluding other considerations, fluctuations in quarterly results,
evolution in customer demand for the Company's products and services,
the impact of price pressures exerted by competitors, and general
market trends or economic changes. As a result, readers are advised
that actual results may differ from expected results.


For further information:

H��roux-Devtek Inc.
Gilles Labb��
President and Chief Executive Officer
Tel.: (450) 679-3330��

Martin Goulet, CFA
Tel.: (514) 731-0000

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