By: The Working Forest Staff
TORONTO, CNW — Wajax Corporation has announced that it has acquired all of the issued and outstanding shares of Calgary, Alberta-based NorthPoint Technical Services ULC. The Shares were acquired from an affiliate of Denver, Colorado-based Lion Equity Partners for an aggregate purchase price of $18 million.
NorthPoint was formed in 2018 as a national electro-mechanical services provider and serves a broad range of resource and industrial customers. Specializing in the repair of rotating industrial equipment, including motors, generators, gearboxes, switchgear, transformers, pumps, fans and turbines, NorthPoint operates nine branches across Canada and employs approximately 177 people. Northpoint’s branches are located in Grand Prairie and Calgary, Alberta; Regina, Saskatchewan; Winnipeg, Manitoba; Kirkland Lake, Sudbury and Sarnia, Ontario; Moncton, New Brunswick; and St. John’s, Newfoundland.
- Consistent with Wajax’s strategy, the acquisition of NorthPoint is expected to provide meaningful growth in the Corporation’s Engineered Repair Services For the twelve months ended December 31, 2019, NorthPoint had revenues of approximately $49.2 million.
- NorthPoint is complementary to Wajax’s existing ERS business, which includes Montréal, Québec-based Groupe Delom Inc., acquired by Wajax in October 2018. The addition of NorthPoint provides further technical expertise, a skilled workforce and minimal branch overlap with Wajax’s current ERS locations.
- The acquisition is expected to be immediately accretive to Wajax shareholders in an anticipated range of $0.05 – $0.10 for the 2020 fiscal year, on an earnings per share basis.
“We are extremely pleased to welcome NorthPoint and its team of dedicated professionals to Wajax,” said Mark Foote, president and chief executive officer of Wajax. “The addition of NorthPoint gives our ERS platform strengthened national coverage, complementing the expanded footprint we acquired with Groupe Delom in 2018 and allowing us to better serve our customers. We continue to view ERS as a critical part of our growth strategy as it is expected to enhance our EBITDA margins, requires a lower total working capital investment when compared to our distribution businesses and further enhances our overall value proposition to new and existing customers.”
Paul Crawford, chief executive officer of NorthPoint, stated, “Partnering with Wajax provides our team with a significant opportunity to grow our volume nationally, leveraging Wajax’s extensive sales, marketing and customer relationships. Combining with Wajax offers customers a national partner for all their ERS needs and sets us apart in the marketplace.”
The transaction will be subject to normal post-closing adjustments.