BOUCHERVILLE, QC, Feb. 23 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM), announced today that it has signed a definitive agreement to purchase an additional 65% membership interest in structural steel fabricator FabSouth, LLC and its subsidiaries for US$65 million. The transaction is subject to regulatory approvals in the United States. Once the approvals are obtained, Canam Group will own 80% of FabSouth, LLC.
Under the terms of the agreement, Canam Group undertakes to acquire the remaining 20% membership interest over a three-year period starting in 2011 for an aggregate amount ranging between US$15 million and US$25 million based on a weighted average EBITDA for the years 2010, 2011 and 2012.
The five members of FabSouth, who will continue to be involved in the business, hold the balance of the membership interest in FabSouth, which will be headed by Kurt Langsenkamp, the president of the company since its inception.
FabSouth, a leading fabricator and erector of structural steel products in the United States, operates six plants located in Florida, North Carolina and Georgia. FabSouth's annual sales averaged more than US$325 million between 2007 and 2009. The company currently has 500 employees.
Canam Group president and chief operating officer Marc Dutil noted that FabSouth's operations in the southern United States will enhance and complement those of the Structal-Heavy Steel Construction business unit. The newly acquired entity will operate under the same company name as a business unit of Canam Group.
About Canam Group
Canam Group is an industrial company which, including this acquisition, will operate 18 plants specialized in the design and fabrication of construction products and solutions The company has close to 3,000 employees in Canada, the United States, Romania and India, and has partnerships with companies in Saudi Arabia, the United Arab Emirates and China.
SOURCE Canam Group Inc.
For further information: For further information: Jasmin Gosselin, Vice President, Communications, (450) 641-4000, email@example.com; www.canamgroup.ws