NANAIMO, BC, March 26, 2019 /CNW/ - 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.
AEP is a recently listed 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 strategy enabling us to scale aggressively, giving us a unique opportunity to consolidate a fragmented industry of independent operators.
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.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Atlas Engineered Products Ltd.
For further information: Atlas Engineered Products Ltd., Dirk Maritz, CEO & President, Phone: 1-250-754-1400, Email: email@example.com, Unit 102, 6551 Aulds Road, Nanaimo, BC V9S 5X9, www.atlasengineeredproducts.com; Atlas Engineered Products Ltd., Bill Woods, Chief Financial Officer, Phone: 1-250-754-1400, Email: firstname.lastname@example.org, Unit 102, 6551 Aulds Road, Nanaimo, BC V9S 5X9, www.atlasengineeredproducts.com; For investor relations please contact: Rob Gamley, Phone: 1-604-689-7422, Email: email@example.com, Contact Financial Corp., 810 - 609 Granville St., Vancouver, BC V7Y 1G5