Atlas Engineered Products Closes Coastal Windows Acquisition
Oct 3, 2018
| Source: Atlas Engineered Products Ltd.
VANCOUVER, British Columbia, Oct. 03, 2018 (GLOBE NEWSWIRE) -- ATLAS ENGINEERED PRODUCTS LTD. (“Atlas” or the “Company”) (TSX-V: AEP), a leading supplier of trusses, engineered wood products and building components, is pleased to announce that it has completed the acquisition of all the issued and outstanding shares of Coastal Windows Ltd. (“Coastal Windows”) of Nanaimo, British Columbia. Atlas paid a total of $650,000, consisting of 869,565 Atlas common shares having an agreed value of $400,000 and $125,001 in cash issued and paid on closing, and an additional $124,999 payable within 30 days after closing. The agreed value of the Atlas common shares issued on closing was based on the 20-day volume weighted average price of Atlas’ common shares prior to signing the purchase agreement, being $0.46 per share. Coastal revenues for the twelve months ended May 31, 2018* were approximately $1.7 million with adjusted EBITDA of $98,000 and is expected to have net working capital of approximately $250,000 at closing. The assets of Coastal included in the transaction consist of equipment having an independently appraised value of $246,000 and intangible assets consisting of use licenses and permits related to the windows manufactured by Coastal having an internally assessed value of approximately $150,000. Atlas will be implementing measures over the coming year that it expects will drive stronger gross margins and profits for the Coastal Windows business unit. Mr. Guy Champagne, President of Atlas stated, “The Coastal acquisition is a very important element in the long-term strategy being executed by Atlas. Coastal has perfected a small-footprint and high-quality window manufacturing operation that Atlas will replicate in all its operating regions across Canada. Eventually, Atlas will offer all of its customers the option of filling the window openings in the prefabricated walls that Atlas supplies with Coastal’s high-quality windows. This will eventually provide Atlas with a greater wallet share of the construction projects it is able to supply. This acquisition builds on our long-term commitment to provide our construction industry partners with the full array of components and assemblies they might require for their projects – from design to lockup.”
The current CEO of Atlas, Mr. Hadi Abassi, was the sole shareholder of Coastal. Due to the non-arms-length nature of this transaction, it was reviewed and unanimously approved by the Atlas Board of Directors prior to closing. About Atlas Engineered Products Ltd.
Atlas Engineered Products Ltd. is a leading supplier of trusses and engineered wood products. Atlas was formed over 18 years ago and operates manufacturing and distribution facilities in British Columbia, Ontario and Alberta to meet the needs of residential and commercial builders. Atlas has expert design and engineering teams, multiple-shift state-of-the-art truss manufacturing operations, and large inventories of engineered beam and flooring components. Atlas aims to grow its base of business across Canada by pursuing an aggressive acquisition and consolidation and product diversification strategy. Atlas will bring its construction industry partners across Canada unparalleled excellence in service, product, and support and is committed to supplying them with the full array of components and assemblies they might require for their projects – from design to lockup. For further information please contact:
Atlas Engineered Products Ltd.
Vancouver, BC V7Y 1G5
* The Company’s news release dated August 2, 2018 incorrectly referred to the twelve month period ended June 30, 2017. Readers are cautioned that the financial results of Coastal Windows Ltd. for the twelve months ended May 31, 2017 were prepared by management, and have not been audited or reviewed by an independent auditor. EBITDA and adjusted EBITA are measures not recognized under IFRS. However, Atlas’ management believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. EBITDA is defined as earnings before interest income, interest expense, taxes, depreciation and amortization. Adjusted EBITDA is calculated as net income less total interest expense, income taxes, depreciation and amortization and non-cash charges for share based compensation. Management believes EBITDA and adjusted EBITDA are useful measures that facilitate period to-period operating comparisons
EBITDA and adjusted EBITDA do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that EBITDA and adjusted EBITDA are not alternatives to measures determined in accordance with IFRS and should not, on their own, be construed as indicators of performance, cash flow or profitability. 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 Filing Statement filed by the Company 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. Related Articles