viewAtlas Engineered Products Ltd.

Atlas Engineered Products builds presence in Lower Mainland region of British Columbia amid 'significant demand' for products

The engineering company has inked a deal to acquire assets from a local truss manufacturer in the region

Atlas Engineered Products Ltd. -
AEP’s newly established company Novum Building Components will conduct the acquisition

Atlas Engineered Products Ltd (CVE:AEP) (OTCMKTS:APEUF) announced Tuesday it is expanding its geographical footprint into British Columbia’s Lower Mainland region through the acquisition of assets from a local truss manufacturer.

Located in the province’s Fraser Valley, the newly-acquired operation will supply Atlas’s engineered wood products like pre-manufactured wall panels and manufactured floor trusses to the Lower Mainland region.

The move comes as the engineering company looks to fast-track its expansion plans in the province amidst “significant demand” for its products and services, CEO Dirk Maritz told shareholders in a statement.

READ: Atlas Engineered Products continues growth journey despite pandemic; posts 14% revenue growth in 1Q

According to Maritz, AEP's core market segment in the residential market showed a 3.5% increase in registrations to June 2020 compared to 2019 while the residential and commercial building market in the province continues to perform.

The resilience of the sector encouraged AEP to speed up its expansion plans in BC, firstly through the establishment of a new pre-fabricated wall factory expansion in Nanaimo, the company said.

“There is a significant market demand for AEP's products and services in Lower Mainland BC, and our other BC location is performing at record levels," Maritz said.

"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.”

AEP’s newly established company Novum Building Components Ltd will conduct the acquisition. Under the term sheet, AEP will purchase the assets for C$350,000 in cash, with 50% of the price to be paid on closing and the remainder payable in equal monthly instalments over three years.

The deal is expected to close by the end of July.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

Quick facts: Atlas Engineered Products Ltd.

Price: 0.385 CAD

Market: TSX-V
Market Cap: $22.22 m

Add related topics to MyProactive

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


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...


Atlas Engineered Products acquires company giving them footprint in Metro...

Atlas Engineered Products (CVE: AEP-OTC: APEUF) CEO Dirk Maritz shared the news with Steve Darling from Proactive Vancouver that Atlas has made another key acquisition giving them a footprint into the large market of Metro Vancouver. Maritz telling Proactive the new company called Novum will...

on 14/7/20

2 min read