Atlas Engineered Products Completes Acquisition of Key Assets of Trusstem Industries Inc.
Atlas Engineered Products (“AEP” or the “Company”) announced that, further to its news release dated July 14, 2020, the Company has now completed the acquisition of selected assets (the “Asset Acquisition”) of Trusstem Industries Inc. (the “Trusstem”), marking a major milestone in AEP’s plans for expansion into the Lower Mainland region of British Columbia.
“We have been evaluating several opportunities in Western Canada for quite some time now. There is significant market demand for AEP’s products and services, and our Vancouver Island location is performing at record levels. COVID-19 has highlighted AEP’s organizational and geographical strengths. With the minimal impacts experienced in the BC building environment during the pandemic, we have made expanding our footprint in British Columbia a priority,” says Dirk Maritz, AEP’s CEO & President. “With this acquisition we not only expand our overall geographic footprint, but we enter into the thriving Lower Mainland BC market. AEP can serve this market with pre-manufactured wall-panels, manufactured floor trusses, I-joists, LVL options, open web floors, roof trusses and other engineered wood products.”
The Asset Acquisition was completed through AEP’s newest company, Novum Building Components Ltd. (“Novum”). The Asset Acquisition was purchased for $350,000 in cash, with 50% of the purchase price paid on closing, and the remaining 50% payable equal monthly installments over 3 years. Novum will be located in Abbotsford, British Columbia and is expected to begin operations immediately. The new operations will be rebranded under the Novum name, meaning ‘new and innovative’.
AEP has identified under-utilized manufacturing assets across the group and will be refurbishing and upgrading them for installation at Novum in addition to the assets acquired from Trusstem. Once completed, the revamped factory with its upgraded equipment will be able to supply similar volumes to AEP’s flagship Nanaimo operations. The first phase of upgrades is scheduled to start in a few weeks and is expected to be completed over the coming months.
All loyal customers of Trusstem will continue to be taken care of, with all current work-on-hand to be completed. In addition, AEP will be adding a number of its own customers based in the Lower Mainland. These include new customers, as well as customers that already have deep relationships with AEP and do business with AEP’s Atlas Building Systems Ltd. operation on Vancouver Island.
AEP has assigned industry veteran Doug Paterson, ex-Director, Sales & Branch Operations British Columbia at Ply Gem Canada Inc., to oversee business development for the Lower Mainland BC market. Mr. Paterson has deep roots in the building and construction industry across Canada and North America. With Mr. Paterson’s industry contacts, combined with AEP’s deep and respected relationships, AEP believes Novum will transform into a significant market player.
“We believe that our expansion into the Lower Mainland market through Novum is a smart acquisition,” commented AEP’s Executive Vice President, Brittany Ray-Wilks. “Unlike other acquisitions we have done to date, this is an asset purchase that adds significant value to AEP. The low-cost structure with which we have entered Lower Mainland BC, combined with the strategic location and robust market
makes sense as a next step in the AEP growth story. Not only are we taking over existing work-on-hand, but we are also adding our own customer base. With our focus on efficiencies, productivity, economies-of-scale and buying power optimization, we are confident we can deliver on our growth and profitability targets with Novum. This deal checks every box to deliver shareholder value.”
About Atlas Engineered Products Ltd.
AEP is a growth company that is acquiring and operating profitable, well-established operations in Canada’s truss and engineered products industry. We have a well-defined and disciplined acquisition and operating growth strategy enabling us to scale aggressively, giving us a unique opportunity to consolidate a fragmented industry of independent operators.
Brittany Ray-Wilks – Executive Vice President – Brittany.Ray-Wilks@atlasaep.ca – (250) 754-1400
Source: Atlas Engineered Products Ltd.