BRAMPTON BRICK ANNOUNCES ACQUISITION OF ATLAS BLOCK ASSETS
Brampton Brick Limited (TSX:BBL.A) today announced that it has entered into an asset purchase agreement to acquire substantially all of the assets of Atlas Block, including its state-of-the-art facility located in Hillsdale, Ontario. The acquisition is being made from KPMG Inc., the Court-appointed receiver of Atlas Block, and is subject to the Corporation being satisfied with certain due diligence investigations and to the issue by the Court of an approval and vesting order in a form reasonably acceptable to the Corporation.
This acquisition will allow the Corporation to add production capacity to its facilities and take advantage of cost-saving synergies by consolidating production of similar items resulting in greater economies of scale. The enhanced technology at the Hillsdale facility will support the Corporation in its initiatives to expand its product portfolio and better service its concrete landscape and masonry products customers.
The aggregate purchase price is anticipated to be approximately $12 million - $14 million, including inventory purchase costs and expenses associated with incorporating the assets into the Corporation.
The purchase price and inventory will be financed via term bank debt.
This transaction is expected to close on or about January 6, 2014.
Brampton Brick is Canada's second largest manufacturer of clay brick, serving markets in Ontario, Quebec and the Northeast and Midwestern United States from its brick manufacturing plants located in Brampton, Ontario and near Terre Haute, Indiana.