@atlasengineeredproducts.com
NANAIMO – Atlas Engineered Products has purchased the operations, lands and buildings of Hi-Tec Industries Ltd. for $9.05 million, completing a process that started with the signing of a letter of intent on November 21, 2021.
Atlas is a truss and engineered products company with its head office on Boxwood Road in Nanaimo. Hi-Tec is a roof truss manufacturer based in Lantzville that makes roof trusses and sells engineered wood products. Albert Landry was the owner/manager of the family business that has operated for over four decades.
“We are excited to announce the acquisition of Hi-Tec,” notes AEP Chief Executive Officer and Founder Hadi Abassi. “Hi-Tec is a successful, well-run business and when this acquisition opportunity arose it was too good to pass up. The future synergies with our Atlas Building Systems location and additional customer base for product expansion is exciting and 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.”
During its last fiscal year ended August 31 2021, Hi-Tec earned unaudited revenues of just over $5.0 million, with net income before taxes of just over $1.0 million. Over the last three years, Hi-Tec earned average unaudited revenues of approximately $4.6 million, net income before taxes of $751,000.
AEP acquired all of the issued and outstanding shares of Hi-Tec for a purchase price of $5.8 million in cash, and the land and buildings on which Hi-Tec’s facilities are located for a price of $3.25 million. AEP has entered into a term loan for the $5.8 million and a mortgage for 75% of the $3.25 million through the Company’s existing banking relationships, with the remaining portion of the land and building purchase and working capital adjustment will be funded by internally generated cash.
AEP opted to fund this acquisition with debt given the current low interest rates and to preserve majority of its cash for future strategic plans and opportunities.
