By: The Working Forest Staff
NANAIMO, B.C. – A British-Columbia producer of trusses and engineered wood products is expanding its footprint to Ontario with the purchase of Clinton Roof Truss Ltd. Atlas Engineered Products of Nanaimo, B.C., has entered into a letter of intent with Clinton Roof Truss to acquire all of the issued and outstanding shares.
Guy Champagne, president of Atlas, commented, “The acquisition of Clinton represents a major milestone of our acquisition program to significantly broaden our geographic reach. We are extremely pleased to be acquiring Clinton as it is highly accretive and provides us with a strategic base from which to expand in Ontario.”
The purchase includes 31,000 square feet of plant, warehouse and office space on a five-acre site in Clinton, Ont., north of London. Atlas says the site is strategically located to provide access to the growing Ontario communities west of Mississauga.
Clinton Truss is a growing business and has over $3 million in annual sales, strong profitability, and very capable operational leadership, according to Atlas.The current owners of the business will be retiring.
Atlas and Clinton Truss have agreed to negotiate a definitive agreement whereby Atlas will acquire all of the issued and outstanding shares of Clinton for $2.1 million cash and issue $140,000 in common shares of the company on closing of the transaction. As additional consideration, the shareholders of Clinton will receive an additional $360,000. The company is entitled to carry out due diligence until January 6, 2018.
Atlas Engineered Products is one of British Columbia’s leading suppliers of trusses and engineered wood products. The company operates manufacturing and distribution facilities in Nanaimo to meet the needs of residential and commercial builders. Atlas aims to grow its base of business across Canada by pursuing an aggressive acquisition and consolidation strategy.