logo-loader
viewAtlas Engineered Products Ltd.

Atlas Engineered Products closes acquisition of Tandelle-Pacer

With the deal, Atlas adds a large truss, engineered beam and wall and floor panel business, the firm said

1542744025_Atlas1.jpg
Pictured is a roof truss...

Atlas Engineered Products Ltd (CVE:AEP), a supplier of engineered wood products, has completed its previously announced acquisition of Tandelle Specialty Inc. and Pacer Building Components Inc. previously announced in August this year.

With the deal, Atlas adds a large and well-established truss, engineered beam and wall and floor panel business, the firm said.

It also enjoys a large, solid and growing customer base in the Greater Toronto area, entry into the Detroit, Buffalo and Rochester Market, and room to expand operations.

"Completion of this acquisition is a significant milestone for Atlas, as we add enormous engineering and design skill, manufacturing capacity and strong profitability to Atlas," said Dirk Maritz, President & CEO of Atlas.

"We now have a significant level of revenue and cash flow critical mass, which allows us to really target larger, really profitable acquisition targets, and deliver strong results for shareholders."

"Fundamentally, this transaction affirms the strength of both our acquisition and organic growth strategies with Atlas now approaching that $40m-$50m top-line revenue mark, and huge opportunity to grow organically in each of our group locations."

To acquire Tandelle-Pacer, which had unaudited revenues for the year to 31 October 2017 of around $14.4 million, Atlas paid $8.6 million on closing, based on Tandelle-Pacer having a target net working capital of $2,280,938 on closing.

The purchase price paid on closing was $8.1 million in cash, and over 1.063mln shares having an agreed upon value of $500,000.

Shares in Atlas nudged up 1.28% to $0.395.

Quick facts: Atlas Engineered Products Ltd.

Price: 0.39 CAD

TSX-V:AEP
Market: TSX-V
Market Cap: $22.51 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

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...

In exchange for publishing services rendered by the Company on behalf of Atlas Engineered Products Ltd. named herein, including the promotion by the Company of Atlas Engineered Products Ltd. in any Content on the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Atlas Engineered Products Co-founder talks company's rich...

Atlas Engineered Products (CVE: AEP) Co-founder Hadi Abasi dropped into the Vancouver Studio of Proactive to discuss the growing company and their humble beginnings.  Abassi also talked about a major hire for the company that he feels has set them up for great success in the future.

on 13/12/19

2 min read