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Atlas Engineered Products closes acquisition of Trusstem Industries in British Columbia's Lower Mainland region

Nanaimo-based Atlas called the acquisition a “major milestone” in its plans to expand amid increased demand in the region

Atlas Engineered Products Ltd. -
British Columbia's Lower Mainland region includes the bustling city of Vancouver

Atlas Engineered Products Ltd (CVE:AEP) (OTCMKTS:APEUF) has closed the acquisition of Trusstem Industries Inc, a truss manufacturer in the Lower Mainland region of British Columbia.

In a statement, Nanaimo-based Atlas called the acquisition a “major milestone” in its plans to expand amid increased demand in the region, which includes the major city of Vancouver.

"We have been evaluating several opportunities in Western Canada for quite some time now,” Atlas CEO Dirk Maritz said in a statement. “There is significant market demand for AEP's products and services, and our Vancouver Island location is performing at record levels.”

READ: Atlas Engineered Products builds presence in Lower Mainland region of British Columbia amid 'significant demand' for products

The current coronavirus pandemic has highlighted AEP's organizational and geographical strengths, Maritz added, making expanding its footprint a priority as the province’s building environment has been minimally impacted by the pandemic.

"With this acquisition we not only expand our overall geographic footprint, but we enter into the thriving Lower Mainland BC market,” Maritz said. “AEP can serve this market with pre-manufactured wall-panels, manufactured floor trusses, I-joists, LVL options, open web floors, roof trusses and other engineered wood products."

AEP completed the acquisition from its Novum Building Components Ltd company, paying $350,000 in cash payable in installments over three years. Novum will be based in Abbotsford, British Columbia and is expected to begin operating under the Novum brand “immediately,” according to the company.

Building blocks in Lower Mainland

AEP’s executive vice president operations Brittany Ray-Wilks told shareholders in the statement that the acquisition adds significant value to the company.

“The low-cost structure with which we have entered Lower Mainland BC, combined with the strategic location and robust market makes sense as a next step in the AEP growth story,” she said.

The company is taking over existing work-on-hand as well as adding its own customer base, according to Ray-Wilks.

The firm also appointed Doug Paterson to oversee business development for the Lower Mainland BC market.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Quick facts: Atlas Engineered Products Ltd.

Price: 0.35 CAD

TSX-V:AEP
Market: TSX-V
Market Cap: $20.2 m
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