CANADA (News release) -- Atlas Engineered Products has entered into an asset purchase agreement to acquire selected assets of a local truss manufacturer as the company expands its geographical footprint into the Lower Mainland region of British Columbia, the company said in a statement.
"The residential and commercial building market in BC has continued to perform well in 2020. AEP's core market segment in the residential market showed a 3.5% increase in registrations to June 2020, when compared to 2019. This is incredibly impressive when taking in to consideration BC had large parts of the economy shut down for several weeks battling the global COVID-19 pandemic. It is this buoyancy that encouraged us to fast track our plans for expansion in BC, firstly through establishing our new pre-fabricated wall factory expansion in Nanaimo, and now through this geograpically smart expansion. There is a siginificant market demand for AEP's products and services in Lower Mainland BC, and our other BC location is performing at record levels.," says Dirk Maritz, AEP's CEO & President.
"A few months ago we identified an outstanding smaller player in the truss manufacturing market and have entered into an agreement to purchase some key assets. Once this acquisition is completed, we will continue upgrades to this facility and its equipment in order to expand and develop the Lower Mainland market through a full service business. Located in the Fraser Valley, this new operation will supply our pre-manufactured wall-panels, manufactured floor trusses, I-joists, LVL options, open web floors, roof trusses and other engineered wood products to the very large Lower Mainland BC market."
The Asset Acquisition will be conducted through AEP's newest established company, to be known as Novum Building Components Ltd. The selected assets will be purchased at a price of $350,000, payable in cash, with 50% of the purchase price to be paid on closing and the remaining 50% payable in equal monthly installments over 3 years. Completion of the Asset Acquisition is expected to occur in the latter half of July 2020. Closing is subject to, among other things, evidence of discharge of all encumbrances affecting the assets to be purchased, delivery of general conveyance documents, assignment of certain contracts and entry into a lease agreement for the facility site.