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Alpine 4 Technologies Inc says subsidiaries Deluxe Sheet Metal and Morris Sheet Metal merging to become one of the largest Midwest sheet metal contractors

Published: 09:45 08 Mar 2021 EST

Alpine 4 Technologies Ltd. - Alpine 4 Holdings Inc says subsidiaries Deluxe Sheet Metal Inc and Morris Sheet Metal Corporation are merging to become one of the largest sheet metal contractors in the Midwest region
Alpine 4 CEO Kent Wilson says the combined companies should reach revenues in excess of $50 million within the next 36 months

Alpine 4 Technologies Inc (OTCQB:ALPP) announced Monday that its subsidiaries Deluxe Sheet Metal Inc and Morris Sheet Metal Corporation are merging to become one of the largest sheet metal contractors in the Midwest region. 

Both companies will operate under the Morris Sheet Metal brand, and Deluxe and Morris are expected to be fully integrated by May 2021, Alpine 4 said in a statement.

“This merger creates a more harmonious relationship between the two companies,” the company said. “The combining of resources empowers Morris to strengthen its brand through its strategic banking relationship, eliminate duplicative and competitive interests, and expand its footprint beyond the Indiana home base.”

READ: Alpine 4 Technologies appoints four new independent board members

Alpine 4 noted that Morris will now have over 100,000 square feet of production and office space and over 90 Union Sheet Metal Workers in South Bend and Fort Wayne, Indiana. Both locations put the company within 2-3 hours of Chicago, Indianapolis, Detroit and Grand Rapids, Michigan, Toledo and Columbus, Ohio, and Milwaukee, Wisconsin.

"The merger of Deluxe Sheet Metal and Morris Sheet Metal will have enormous implications for the Mechanical Contractor industry in the American Midwest,” said Alpine 4 CEO Kent Wilson in a statement.

“The merger will provide positive impacts for the customers and communities we serve. These impacts will range from; better pricing and enhanced quality control, the latest in construction management technology, and a well-capitalized parent company ready to dominate the Midwest sector. Our competition, however, will have to reckon with these resources, though I doubt they will be able to compete at our level in the market.”

Wilson said Deluxe Sheet Metal can trace its roots back to the 1950's and is known in the industry as the go-to contractor for high-tech thermal management. Its customers range from the University of Notre Dame to GE and many other top-tier companies in the Midwest. The company recently built one of the largest cryptocurrency mining facilities in the Midwest, requiring precise thermal management. 

He noted that Morris Sheet Metal is the preferred contractor for one of the largest hospital networks in Indiana. During 2020 and the coronavirus (COVID 19) epidemic, Morris was responsible for building hundreds of isolation rooms. 

“The combined company anticipates the benefits of that merger to drop the General & Administrative expenses by almost 7% in the first 12 months after the transaction,” Wilson said. 

“We also expect our gross profit margin to increase as our Material Cost of Goods will decrease by 5% due to increased purchasing power. The combined companies should reach revenues in excess of $50M, without major capital investments, within the next 36 months."

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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