Atlas Engineered Products Ltd (CVE:AEP), a supplier of engineered wood products, said it had completed its earlier announced acquisition of manufacturer Coastal Windows Ltd. of Nanaimo, British Columbia, sending shares up.
In total, Atlas paid $650,000, which consisted of 869,565 valued at $400,000 and $125,001 in cash issued and paid on closing. It must also pay a further $124,999 within 30 days after closing.
"The Coastal acquisition is a very important element in the long-term strategy being executed by Atlas," said Guy Champagne, the president of Atlas.
"Coastal has perfected a small-footprint and high-quality window manufacturing operation that Atlas will replicate in all its operating regions across Canada.
"Eventually, Atlas will offer all of its customers the option of filling the window openings in the prefabricated walls that Atlas supplies with Coastal's high-quality windows.
"This will eventually provide Atlas with a greater wallet share of the construction projects it is able to supply.
"This acquisition builds on our long-term commitment to provide our construction industry partners with the full array of components and assemblies they might require for their projects from design to lockup."
Coastal revenues for the 12 months to end May this year were around $1.7 million with adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) of $98,000 and is expected to have net working capital of around $250,000 at closing.
Atlas said it will implement measures over the coming year that it expects will drive stronger gross margins and profits for its Coastal Windows business unit.
Shares in Atlas Engineered added 5.26% in Toronto to stand at $0.40.