
TORONTO, Ontario — Wajax Corporation announced Monday that it has acquired all of the issued and outstanding shares of Calgary, Alberta-based NorthPoint Technical Services ULC. The shares were acquired from an affiliate of Denver, CO-based Lion Equity Partners for an aggregate purchase price of $18 million.
Transaction Highlights
- Consistent with Wajax’s strategy, the acquisition of NorthPoint is expected to provide meaningful growth in the Corporation’s Engineered Repair Services (“ERS”) business. For the twelve months ended December 31, 2019, NorthPoint had revenues of approximately $49.2 million.
- NorthPoint is complementary to Wajax’s existing ERS business, which includes Montréal, Québec-based Groupe Delom Inc., acquired by Wajax in October 2018. The addition of NorthPoint provides further technical expertise, a skilled workforce and minimal branch overlap with Wajax’s current ERS locations.
- The acquisition is expected to be immediately accretive to Wajax shareholders in an anticipated range of $0.05 – $0.10 for the 2020 fiscal year, on an earnings per share basis.
Paul Crawford, Chief Executive Officer of NorthPoint, stated, “Partnering with Wajax provides our team with a significant opportunity to grow our volume nationally, leveraging Wajax’s extensive sales, marketing and customer relationships. Combining with Wajax offers customers a national partner for all their ERS needs and sets us apart in the marketplace.”
The transaction will be subject to normal post-closing adjustments.
Wajax's industrial products segment was No. 32 on Industrial Distribution's 2019 Big 50 List after posting $349 million in 2018 sales.