Atlas Continues Canadian Expansion Through Acquisition

Industry News,

Originally Published by: Atlas Engineered Products — August 23, 2023
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Atlas Engineered Products (“AEP”) has completed the acquisition of Léon Chouinard et Fils Co. Ltd./Ltée. (“LCF”) located in New Brunswick, Canada. LCF is a manufacturer of roof trusses, floor systems, and wall panels and a supplier of engineered wood products.

Atlas Engineered Products

This transaction is aligned with the Company’s strategic acquisition plan and expands the Company’s geographical reach, as well as growing its wall panel manufacturing expertise and capacity. In 2022, LCF generated over $25.7 million in revenues, net income of over $6.3 million and non-IFRS measure normalized EBITDA of approximately $9.47 million. Moving forward, AEP anticipates being able to bring its considerable operating synergies and material buying power to LCF’s operations as it integrates LCF into the AEP group of companies.

The acquisition of LCF was completed effective August 23, 2023. To acquire all the issued and outstanding shares of LCF, the Company paid a purchase price of $26 million plus $2,884,737 ($28,884,737 total) in net closing adjustments for LCF’s cash, income taxes receivable and payable and working capital excluding inventory as at June 30, 2023. The purchase price includes the land and buildings on which LCF’s facilities are located which have been appraised at $2.792 million.

AEP is a growth company that is acquiring and operating profitable, well-established operations in Canada’s truss and engineered products industry.