CPE Information (13/30/2020) – Wajax Company (TSX: WJX) has entered right into a definitive settlement to accumulate Tundra Course of Options Ltd.from house owners Iggy Domagalski, Mike Miller, and Dan Peet, for $99.1 million, consisting of $74.6 million in money and 1,357,142 Wajax widespread shares.
Calgary primarily based Tundra Course of Options is a Western Canadian distributor of various industrial course of gear for industries resembling Oil & Fuel, Petrochemical, Mining, Forestry, Municipalities and plenty of others. The corporate represents industry-leading producers in Synthetic Elevate, Motors & Drives, Boilers & Water Remedy, Panels & Buildings, Valve & Actuation, Measurement & Analytical, and Service & Help. Tundra additionally gives a full vary of pre-fabricated panels, buildings, gear, and truck offloading methods.
With roughly 150 workers, Tundra operates 4 amenities in Alberta: Calgary, Edmonton (2 areas) and Grande Prairie. Tundra additionally maintains a neighborhood gross sales presence in Fort McMurray and Crimson Deer, Alberta; Vancouver and Fort St. John, British Columbia; and southern Saskatchewan.
picture credit score: Tundra Course of Options
WAJAX ANNOUNCES ACQUISITION OF TUNDRA PROCESS SOLUTIONS
Toronto, Ontario – December 30, 2020 – Wajax Company (“Wajax” or the “Company”) right now introduced that it has entered right into a definitive settlement (the “Definitive Settlement”) to accumulate all the issued and excellent shares of Calgary, Alberta-based Tundra Course of Options Ltd. (“Tundra”) for whole consideration of $99.1 million.
Pursuant to the phrases of the Definitive Settlement, the acquisition value for the Tundra shares will probably be happy by the fee in money of $74.6 million and the issuance of 1,357,142 widespread shares of Wajax. The worth of the Wajax widespread shares to be issued will probably be primarily based on the twenty-day quantity weighted common buying and selling value of Wajax widespread shares on the Toronto Inventory Alternate (the “TSX”) for the interval ending December 29, 2020. The transaction is predicted to shut early within the first quarter of 2021 and is topic to customary closing circumstances, together with the approval of the TSX and approval underneath the Competitors Act (Canada), in addition to regular post-closing changes.
Based in 1999, Tundra supplies upkeep and technical companies to clients within the western Canadian midstream oil and fuel, oil sands, petrochemical, mining, forestry and municipal sectors. Tundra additionally distributes a various vary of business course of gear, representing industry-leading producers of valves and actuators, instrumentation and controls, motors and drives, management buildings, boilers and water remedy options. Using roughly 150 individuals, Tundra operates 4 amenities in Alberta: Calgary, Edmonton (2 areas) and Grande Prairie. Tundra additionally maintains a neighborhood gross sales presence in Fort McMurray and Crimson Deer, Alberta; Vancouver and Fort St. John, British Columbia; and southern Saskatchewan.
• In step with Wajax’s technique, the acquisition of Tundra is predicted to offer significant progress within the Company’s Engineered Restore Companies (“ERS”) and industrial components classes. For the twelve months ended November 30, 2020, Tundra had revenues of roughly $147.8 million;
• Tundra’s operations are complementary to Wajax’s current ERS and industrial components companies, including extensively to its service providing and product portfolio, and additional enhancing the “One Wajax” worth proposition as macro tailwinds assist the potential for a return to pre-COVID-19 exercise ranges; and
• The acquisition is predicted to be instantly accretive to Wajax shareholders in an anticipated vary of $0.10 – $0.15 for the 2021 monetary 12 months, on an earnings per share foundation.
Concurrent with the signing of the Definitive Settlement and to help in funding the money portion of the acquisition value for the Tundra shares, Wajax has entered into an settlement with the lenders underneath its current credit score amenities for a $50.0 million acquisition credit score facility. Such acquisition credit score facility is for a 24-month time period and is on considerably the identical phrases because the Company’s current credit score amenities. The Company expects to proceed to make use of money movement from operations to contribute to debt discount and to keep up its present quarterly dividend of $0.25 per share.
“We welcome Tundra and its group of devoted professionals to Wajax,” mentioned Mark Foote, President and Chief Govt Officer of Wajax, “Tundra’s market management in course of management supplies Wajax with significant scale in ERS and associated industrial components in western Canada. In central and japanese Canada, Tundra’s technical capabilities and product and repair vary will present new alternatives to additional prolong Wajax’s ERS companies to our clients. Our complimentary cultures of security, customer support and product and repair innovation interprets into progress pushed by a constant imaginative and prescient of continually growing what we will do for our clients.”
Iggy Domagalski, Chief Govt Officer of Tundra, said, “Partnering with Wajax permits us to immediately develop our volumes by leveraging our mixed buyer relationships and department networks. Current Wajax clients will profit from a broader vary of valve, instrumentation and electrical services and products, and current Tundra clients will profit from Wajax’s intensive ERS portfolio and geographic footprint. We’re excited to affix Wajax and contribute to the purpose of changing into Canada’s main ERS supplier.”
PricewaterhouseCoopers LLP and Scotiabank are appearing as monetary advisors to Wajax in reference to the acquisition. Deloitte Company Finance Inc. is serving as monetary advisor to Tundra.
Based in 1858, Wajax (TSX: WJX) is considered one of Canada’s longest-standing and most diversified industrial services and products suppliers. The Company operates an built-in distribution system offering gross sales, components and companies to a broad vary of shoppers in various sectors of the Canadian financial system, together with: development, forestry, mining, industrial and business, oil sands, transportation, steel processing, authorities and utilities, and oil and fuel.
The Company’s purpose is to be Canada’s main industrial services and products supplier, distinguished by way of its three core capabilities: gross sales drive excellence, the breadth and effectivity of restore and upkeep operations, and the flexibility to work intently with current and new vendor companions to always increase its product providing to clients. The Company believes that attaining excellence in these three areas will place it to create worth for its clients, workers, distributors and shareholders.
Extra info, together with Wajax’s Annual Report, is accessible on SEDAR at www.sedar.com.
For additional info, please contact:
Mark Foote, President and Chief Govt Officer
Electronic mail: email@example.com
Stuart Auld, Chief Monetary Officer
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Trevor Carson, Vice President, Provide Chain and Company Growth
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Phone #: (905) 212-3300