CANADA (News release) -- Atlas Engineered Products Ltd. ("AEP") has reached an agreement with ZyTech Building Systems LP to acquire the bulk of ZyTech's manufacturing assets from its former Langley location in the Lower Mainland of British Columbia, Canada.
The equipment purchase is expected to close on January 31, 2021 at a purchase price of $958,160, which is below replacement or market value. The company paid ZyTech a deposit of $100,000 upon execution of the agreement, and may take possession of the equipment prior to closing. The equipment will be installed at AEP's Novum and Atlas Building Systems locations starting in 1Q 2021 and is expected to be ready for the 2021 peak building season. In addition to acquiring this equipment, AEP will be completing several supply contracts for a number of ZyTech's clients.
"Last year we increased our footprint in British Columbia by expanding into the Lower Mainland through Novum Building Components Ltd. ("Novum") and by adding a pre-manufactured wall plant at our Atlas Building Systems Ltd. operations in Nanaimo on Vancouver Island. Now with this asset purchase from Zytech, we are adding advanced technology equipment to our business, and it will improve our profitability at several locations," said Dirk Maritz, AEP's CEO & President.
"During 2020, the BC construction industry experienced minimal impact, which made the continued expansion of our BC operations a priority. ZyTech's decision to focus on its Alberta and US assets marks the departure of a local industry competitor and also yields an opportunity to bolster our Vancouver Island and Lower Mainland facilities. These equipment additions are anticipated to result in significant increases in efficiency and further strengthen our position as a full service solutions provider. We have worked exceptionally hard to position ourselves in this way and we are proud to be offering a full and expanded range of products including pre-manufactured wall-panels, manufactured floor trusses, I-joists, LVL options, open web floors, roof trusses and other engineered wood products to the very large and buoyant BC market," continued Mr. Maritz.
Atlas Engineered Products Ltd. is a growth company that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry.