World News: 13:25 GMT Wednesday 3rd October 2018. [Atlas Engineered Products Ltd. via Globe Newswire via SPi World News]
VANCOUVER, British Columbia, Oct. 03, 2018 (GLOBE NEWSWIRE) -- , a leading supplier of trusses, engineered wood products and building components, is pleased to announce that it has completed the acquisition of all the issued and outstanding shares of Coastal Windows Ltd. (“Coastal Windows”) of Nanaimo, British Columbia.
Atlas paid a total of $650,000, consisting of 869,565 Atlas common shares having an agreed value of $400,000 and $125,001 in cash issued and paid on closing, and an additional $124,999 payable within 30 days after closing. The agreed value of the Atlas common shares issued on closing was based on the 20-day volume weighted average price of Atlas’ common shares prior to signing the purchase agreement, being $0.46 per share.
Coastal revenues for the twelve months ended May 31, 2018* were approximately $1.7 million with adjusted EBITDA of $98,000 and is expected to have net working capital of approximately $250,000 at closing. The assets of Coastal included in the transaction consist of equipment having an independently appraised value of $246,000 and intangible assets consisting of use licenses and permits related to the windows manufactured by Coastal having an internally assessed value of approximately $150,000. Atlas will be implementing measures over the coming year that it expects will drive stronger gross margins and profits for the Coastal Windows business unit.
Mr. Guy Champagne, President of Atlas stated, “The Coastal acquisition is a very important element in the long-term strategy being executed by Atlas. Coastal has perfected a small-footprint and high-quality window manufacturing operation that Atlas will replicate in all its operating regions across Canada. Eventually, Atlas will offer all of its customers the option of filling the window openings in the prefabricated walls that Atlas supplies with Coastal’s high-quality windows. This will eventually provide Atlas with a greater wallet share of the construction projects it is able to supply. This acquisition builds on our long-term commitment to provide our construction industry partners with the full array of components and assemblies they might require for their projects – from design to lockup.”
The current CEO of Atlas, Mr. Hadi Abassi, was the sole shareholder of Coastal. Due to the non-arms-length nature of this transaction, it was reviewed and unanimously approved by the Atlas Board of Directors prior to closing.
Atlas Engineered Products Ltd. is a leading supplier of trusses and engineered wood products. Atlas was formed over 18 years ago and operates manufacturing and distribution facilities in British Columbia, Ontario and Alberta to meet the needs of residential and commercial builders. Atlas has expert design and engineering teams, multiple-shift state-of-the-art truss manufacturing operations, and large inventories of engineered beam and flooring components. Atlas aims to grow its base of business across Canada by pursuing an aggressive acquisition and consolidation and product diversification strategy. Atlas will bring its construction industry partners across Canada unparalleled excellence in service, product, and support and is committed to supplying them with the full array of components and assemblies they might require for their projects – from design to lockup.
Globe Newswire: 13:25 GMT Wednesday 3rd October 2018
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