Atlas Engineered Products (“AEP”) has completed the acquisition of Hi-Tec Industries Ltd. located in Lantzville, British Columbia, Canada. In addition, AEP has acquired the land and buildings on which Hi-Tec’s facilities are located for a price of $3.25 million in cash based on a completed independent appraisal.
Hi-Tec manufactures roof trusses and sells engineered wood products to a strong, loyal customer base on Vancouver Island in British Columbia. This location is just under 15 minutes north of AEP’s Atlas Building Systems location in Nanaimo, British Columbia which will offer some unique synergies from labour to shipping to equipment and more. During its last fiscal year ended August 31 2021, Hi-Tec earned unaudited revenues of just over $5 million.
Under the terms of the share purchase agreement (“SPA”), AEP has acquired all of the issued and outstanding shares of Hi-Tec for a purchase price of $5.8 million in cash, with a working capital adjustment to be determined and finalized within 60 days of closing date of the SPA.
AEP has entered into a term loan for the $5.8 million and a mortgage for 75% of the $3.25 million through the Company’s existing banking relationships, with the remaining portion of the land and building purchase and working capital adjustment will be funded by internally generated cash. The Company opted to fund this acquisition with debt given the current low interest rates and to preserve majority of its cash for future strategic plans and opportunities.
AEP is a growth company that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry.
