Jan 28 2014
Vicwest Inc. today announced it has agreed to acquire the steel deck and exterior metal cladding business and related resources from the Roll Form Group, a Division of Samuel, Son & Co., Limited.
It is anticipated that the transaction will be completed on January 31, 2014, after which this business will be incorporated into the operations of the Company's exterior building products division, Vicwest Building Products.
The acquisition substantially increases Vicwest Building Products' presence in the steel deck market, improves economies of scale for the Company's recently rationalized manufacturing footprint, enhances its sales team, and creates additional opportunities to grow in commercial, industrial, institutional, residential and agricultural construction markets.
"This acquisition increases our customer base, adds another deck profile to our catalogue, and consolidates an important market for our building products business," said Colin Osborne, President and CEO of Vicwest Inc. "We believe this transaction will bring greater discipline to a marketplace that has under-performed since the recession, and continues to be very challenging, trending at levels well below historical norms. This consolidation will improve our position in the market, add volume in the short term, and provide even greater upside when the domestic non-residential market recovers."
The acquired composite floor deck product line is widely recognized in Canada for its loading performance, which makes it ideal for high rise, heavy traffic and residential construction. The acquired roof deck is designed for flat-roof construction and is available in standard, larger span and acoustic profiles. Both product lines complement and broaden the Company's existing solutions for the building envelope and will be rebranded under the Vicwest banner.
"The integration of these product profiles will be seamless, meaning our customers can rely on us to deliver on time and to the exacting quality standards they demand," said Paul Lobb, President and General Manager of Vicwest Building Products. "By living up to this commitment, we hope to be of broader service through our portfolio of other engineered solutions including our current deck product line and our market-leading metal roofing and cladding, insulated metal panels, and architectural panels. We're also very pleased to add strength to our team through this acquisition, which should help us to improve our market penetration, particularly in Quebec and the Maritime provinces."
As a result of the acquisition, Vicwest Building Products will substantially increase its Canadian revenues from deck products. The purchase price was not disclosed but included the acquisition of inventory, goodwill and receivables and was not material to Vicwest Inc.
"This transaction is beneficial to both parties as it allows Roll Form Group and Vicwest Building Products to bring greater focus to core markets where we have discernable competitive advantages," said Rick Balaz, President of Roll Form Group. "We are particularly pleased that building product customers will be well served going forward. This was one of our primary prerequisites in making this divestiture."