The truss and engineered-products company said Carman, Manitoba-based South Central has a loyal and growing customer base and easy access to the Winnipeg market. It offers potential entry into northern Minnesota and North Dakota, according to Atlas.
Nanaimo, British Columbia-based Atlas paid at closing, a C$300,000 deposit against C$2.5 million in cash as well as assuming debt. Atlas said it expects the balance of the cash payment will be paid within seven to 10 days.
In addition, Atlas will pay the former shareholders of South Central, interest on the unpaid portion of the closing cash amounts at a rate of 10% per annum until that amount has been paid.
The buyer also issued a total of 1 million common shares to the former shareholders of South Central. In addition, Atlas will pay them an additional C$500,000, payable in five equal monthly installments of C$100,000 each, beginning three months after closing.
They may elect to receive these installment payments in Atlas common shares at a price of C$0.40 per share.
Shares of Atlas traded at C$0.30 in Monday’s Canadian trading. They climbed US$0.01 to US$0.22 on the OTC Markets.
Atlas said it continues to make progress on integration activities across all plants, cutting costs and eliminating duplication.
The company added that it has upgraded all plants to a standardized design platform, instituted centralized procurement and introduced wall panels, floor trusses and other engineered products at its Nanaimo facilities.
"We continue to make significant inroads into expanding the customer base,” Atlas CEO Dirk Maritz said in a statement.
Contact Dennis Fitzgerald at [email protected]