Canadian CM Expands Further Through Acquisition
Originally published by: Market Insider — August 14, 2018
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Editor’s Note: The following article summarizes Atlas’ most recent acquisitions. This comes after they recently purchased Clinton Roof Truss Ltd., Satellite Truss Ltd. and Alberta Truebeam Ltd. The company had forecasted this acquisition activity last November, shortly after it became a publicly traded company on the Toronto Venture Exchange.
Atlas Engineered Products Ltd., a leading supplier of trusses, engineered wood products and building components, is pleased to announce that it has entered into a definitive agreement to purchase all of the issued and outstanding shares of Tandelle Specialty Inc. and Pacer Building Components Inc. (Tandelle-Pacer) of Ilderton, Ontario.
Tandelle-Pacer’s revenues for the fiscal year ended October 31, 2017 were approximately $14.4 million with adjusted EBITDA of $1.9 million. To acquire Tandelle-Pacer, Atlas has agreed to pay $8.6 million on closing, based on Tandelle-Pacer having a targeted net working capital of $2,280,938 on closing. Subject to adjustments based on Tandelle-Pacer’s actual net working capital at closing, the purchase price is expected to consist of $500,000 in Atlas common shares, and $8.1 million in cash. Closing of the acquisition, which is expected to occur on or before October 31, 2018, is subject to standard closing conditions, including the satisfactory completion of Atlas’ due diligence investigations and remains subject to the approval of the TSX Venture Exchange.
On closing, Tandelle-Pacer’s CEO and President Dave Howard will be invited to join the Board of Directors of Atlas.
Mr. Guy Champagne, President of Atlas stated, “The Tandelle-Pacer acquisition is expected to be a key transaction for Atlas that gives us a huge strategic advantage in a market in which we are already invested. We will be acquiring an established truss, engineered beam and wall and floor panel business with room to expand operations with ease, a very experienced management team to look after our other sites in Ontario, a large solid and growing customer base in the Greater Toronto area, and entry into the Detroit, Buffalo and Rochester markets.”