Feb 29 2008
Samuel Manu-Tech Inc. today announced that it has acquired the assets and all business operations of Omega Joists Inc. ("Omega"). The company is a recognized leader in the design, engineering, manufacturing and supply of open web steel joists used primarily in the commercial and industrial building products industry in Western Canada. This acquisition complements Samuel's existing roll forming capability at its Roll Form Group operations in Edmonton, Alberta, Mississauga, Scarborough and Cambridge, Ontario and in Iuka, Mississippi.
Omega was founded in 1985 and has manufacturing operations based in Nisku, Alberta, and sales offices in Surrey, British Columbia, Calgary, Alberta and Winnipeg, Manitoba. Annual sales of Omega approximated Cdn $24 million in its most recently completed fiscal year ended April 30, 2007. The company employs approximately 65 people.
The transaction is structured as a purchase of the principle assets of Omega Joists Inc. The purchase price is Cdn $27 million, subject to certain adjustments for working capital items. Management expects this acquisition to be accretive to earnings in its first full year. Funding for the acquisition came from Samuel's existing revolving credit facilities.
"We are excited to welcome Omega Joists, their management and employees to our group of metal processing companies," commented Samuel's Chairman and Chief Executive Officer, Mark Samuel. "We consider this to be a great fit with our roll form operations, allowing us to package the sale of open web steel joists with our existing deck, siding and other building products."