Atlas Engineered Products has completed the acquisition of Hi-Tec Industries Ltd. of Lantzville.
The $9-million deal was announced Tuesday, March 1, but the letter of intent for the transaction was previously announced in late November.
Hi-Tec manufactures roof trusses and sells engineered wood products to a customer base on the Island and is a 15-minute drive from Atlas Building Systems’ Nanaimo location, which will offer some “unique synergies from labour to shipping to equipment and more,” according to a press release from Atlas Engineered Products.
Hadi Abassi, Atlas CEO, said in the release that his company is excited to announce the acquisition of Hi-Tec.
“Hi-Tec is a successful, well-run business and when this acquisition opportunity arose it was too good to pass up…” he said. “Our team is looking forward to this integration moving forward. AEP has completed the next step in expanding its footprint in British Columbia where seasonality and the effects of winter are not as impactful as the rest of Canada.”
Under the terms of the share purchase agreement, AEP has acquired all issued and outstanding shares of Hi-Tec for $5.8 million, with a working capital adjustment to be determined and finalized within 60 days of closing date of the acquisition, and the land and buildings on which Hi-Tec’s facilities are located for $3.25 million, based on a completed independent appraisal.