Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Atlas Engineered Products continues its aggressive acquisition program with Clinton Truss deal

The purchase includes 31,000 sq feet (sq ft) of plant, warehouse and office space on a five acre site
Atlas Engineered Products continues its aggressive acquisition program with Clinton Truss deal
Trussed up like a turkey? Not quite, this firm specialises in the wooden frameworks that support a roof

Wood product firm Atlas Engineered Products Ltd (CVE:AEP) has pressed on with its acquisition strategy and is now set to buy Ontario based Clinton Roof Truss Ltd for C$2.1mln in cash.

The purchase includes 31,000 sq feet (sq ft) of plant, warehouse and office space on a five acre site, positioned to provide access to the growing Ontario communities west of Mississauga.

Moreover, Clinton is growing, said  Atlas, and has over C$3 million in annual sales, strong profitability, and very capable operational leadership.

"The acquisition of Clinton represents a major milestone of our acquisition program to significantly broaden our geographic reach," said Guy Champagne, the president of Atlas.

"We are extremely pleased to be acquiring Clinton as it is highly accretive and provides us with a strategic base from which to expand in Ontario."

Atlas will be entitled to carry out due diligence until January 6 next year, and the plan is that after that, they will enter into the definitive agreement by January 15, 2018.

Under the binding letter of intent, Atlas and the firm have agreed to negotiate a definitive agreement, whereby it will acquire all Clinton shares for C$2.1mln cash and C$140,000 in shares on closing.

As additional consideration, Clinton shareholders will receive a furtherC$360,000, which will be paid $10,000 per month for 36 months following closing.

A significant portion of the cash required to complete the transaction will be provided by mortgage financing and a term loan, the group added.

Last month, Atlas said its first quarter in 2018 saw record sales of  C$2.74mln, which was up 40% compared to the same period last year, where the figure was C$1.96mln, the company said, posting results for the three months to August 31.

Atlas, formed almost 20 years ago, made its debut on the Toronto venture exchange on November 9 and is one of British Columbia’s leading suppliers of trusses and engineered wood products.

The company aims to expand and grow its base of business across Canada by pursuing an aggressive acquisition and consolidation strategy.

It also told investors last month that it was set to acquire Selkirk Truss (2010) Ltd in a deal, which will broaden its reach and boost annual revenues by 20%.

Atlas can carry out due diligence until December 15 this year, whereupon the  pair will enter a definitive agreement setting out terms by the end of 2017.

View full AEP profile View Profile

Atlas Engineered Products Timeline

Related Articles

October 03 2018
This month (October) Atlas said it had completed the acquisition of Coastal Windows Ltd
broken cell phones
October 02 2018
Mineworx Technologies offers a cost-effective, environmentally friendly alternative in extracting precious metals for the mining and E-waste sectors

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use