Atlas Engineered Products has entered into a non-binding letter of intent (LOI) with the shareholders of a truss manufacturing company located in British Columbia to acquire all of the issued and outstanding shares of the Target.
AEP is looking to expand its footprint in British Columbia where seasonality and the effects of winter are not as impactful as the rest of Canada.
“We are excited to announce the signing of this LOI. We have been fairly quiet on the merger and acquisition front while focusing on profitability and organic growth and now is the time to move forward with this strategic acquisition,” said Hadi Abassi, AEPs CEO, president and founder. “The Target will fit in nicely to our overall strategic goals and we are excited for them to potentially join the AEP group of companies.”
Under the terms of the non-binding LOI, AEP intends to acquire all of the issued and outstanding shares of the Target for a proposed purchase price of $5.8 million in cash, plus a working capital adjustment to be determined and finalized within 60 days of closing of the Proposed Transaction.
In addition, AEP intends to acquire the land and buildings on which the Target’s facilities are located for an estimated price of $2.7 million, also to be acquired for cash, subject to the completion of an independent appraisal.
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