Atlas Engineered Products Pays $2.2 Million Balance of Closing Price for Sixth Acquisition
March 28, 2019
Nanaimo, British Columbia, March 26, 2019 - Atlas Engineered Products (“AEP” or the “Company”) (TSX-V: AEP)(OTC Markets: APEUF) reports today it has paid the outstanding closing cash payment of $2.2 million related to its acquisition of South Central Building Systems Ltd. (“South Central”).
The purchase aligns with AEP’s strategy of acquiring and operating profitable, well-established companies in Canada’s truss and engineered products industry. South Central, located in Carman, Manitoba, is a profitable operation with efficient automation, capacity to increase outputs, and a loyal and growing customer base covering more than 25 communities. The plant also provides easy access to the large Winnipeg market, as well as offering potential entry into the northern parts of Minnesota and North Dakota.
The purchase is AEP’s sixth acquisition in just over a year and expands the Company’s cash-flowing portfolio and footprint into a third province, to now include B.C., Ontario and Manitoba.
“We are strengthening the financial and operational performance of these acquired companies through standardized best practices, dedicated sales outreach, cost efficiencies and extended product mix. While focusing on these steps as the shortest pathway to profitability as a combined group, we intend to continue our strategic acquisition path,” says Dirk Maritz, President and CEO of AEP. “Our vision is to create a national family of operating companies deeply entrenched in serving regional construction markets.”
To acquire South Central, AEP agreed to pay an aggregate purchase price of $3.4 million, consisting of $2.5 million payable on closing in the form of cash and assumed or refinanced debts, one million AEP common shares valued at an agreed upon price of $0.40 per share, and $500,000 payable in five equal monthly instalments, with the first instalment payment due in the third month following closing. The former shareholders of South Central may elect to receive these installment payments in AEP common shares at a price of $0.40 per share, provided the election is made with respect to his or her full pro-rated share of the remaining unpaid balance of those installment payments. As reported in its March 5, 2019 press release, on closing AEP paid a deposit of $300,000 against the $2.5 million total cash and refinanced debt obligations. Today’s payment represents the balance of the outstanding cash and refinanced debt obligations.
About Atlas Engineered Products Ltd.
Atlas Engineered Products is a recently listed growth company that is acquiring and operating profitable, well-established operations in Canada’s truss and engineered products industry. Atlas Engineered Products has a well-defined and disciplined acquisition and operating strategy enabling us to scale aggressively, giving us a unique opportunity to consolidate a fragmented industry of independent operators.
For further information please contact:
Atlas Engineered Products Ltd. Atlas Engineered Products Ltd.
Dirk Maritz, CEO & President Bill Woods, Chief Financial Officer
Phone: 1-250-754-1400 Phone: 1-250-754-1400
Email: [email protected] Email: [email protected]
Unit 102, 6551 Aulds Road Unit 102, 6551 Aulds Road
Nanaimo, BC V9S 5X9 Nanaimo, BC V9S 5X9
www.atlasengineeredproducts.com www.atlasengineeredproducts.com
For investor relations please contact:
Rob Gamley
Phone: 1-604-689-7422
Email: [email protected]
Contact Financial Corp.
810 – 609 Granville St.
Vancouver, BC V7Y 1G5
Forward Looking Information
Information set forth in this news release contains forward-looking statements. These statements reflect management’s current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Such factors include, among other things: Risks and uncertainties relating to the Company, including those to be described in the Annual Information Form filed by the Company on June 1, 2018 and the Management’s Discussion and Analysis (“MD&A”) for the Company’s fiscal quarter ended August 31, 2018 filed by the Company on October 17, 2018, both on www.sedar.com. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
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