CANADA (News release) -- Atlas Engineered Products ("AEP") has completed the acquisition of selected assets of Trusstem Industries Inc., marking a major milestone in AEP's plans for expansion into the Lower Mainland region of British Columbia, Canada.
"We have been evaluating several opportunities in Western Canada for quite some time now. There is significant market demand for AEP's products and services, and our Vancouver Island location is performing at record levels. COVID-19 has highlighted AEP's organizational and geographical strengths. With the minimal impacts experienced in the BC building environment during the pandemic, we have made expanding our footprint in British Columbia a priority," says Dirk Maritz, AEP's CEO & President. "With this acquisition we not only expand our overall geographic footprint, but we enter into the thriving Lower Mainland BC market. AEP can serve this market with pre-manufactured wall-panels, manufactured floor trusses, I-joists, LVL options, open web floors, roof trusses and other engineered wood products."
The asset acquisition was completed through AEP's newest company, Novum Building Components Ltd. The asset acquisition was purchased for $350,000 in cash, with 50% of the purchase price paid on closing, and the remaining 50% payable equal monthly installments over 3 years. Novum will be located in Abbotsford, British Columbia and is expected to begin operations immediately. The new operations will be rebranded under the Novum name, meaning 'new and innovative'.
AEP has identified under-utilized manufacturing assets across the group and will be refurbishing and upgrading them for installation at Novum in addition to the assets acquired from Trusstem. Once completed, the revamped factory with its upgraded equipment will be able to supply similar volumes to AEP's flagship Nanaimo operations. The first phase of upgrades is scheduled to start in a few weeks and is expected to be completed over the coming months.
AEP has assigned industry veteran Doug Paterson, ex-Director, Sales & Branch Operations British Columbia at Ply Gem Canada Inc., to oversee business development for the Lower Mainland BC market.