31 July 2002
31 July 2002
MAAX Inc. has signed an agreement in principle to acquire all of the outstanding shares of Aker Plastics Inc., the third largest U.S. manufacturer of fibreglass bathroom equipment.
This acquisition will add over US$75 million (Cdn$115 million) to MAAX's annual sales, which totalled Cdn$518.5 million for the fiscal year ended February 28, 2002, while also having a positive impact on the Company's profitability.
Scheduled to close on October 25, 2002, this transaction is subject to regulatory approvals and a due diligence review of operations. However, Aker Plastics Inc.'s financial results will be accounted for retroactive to September 1st, 2002.
Aker Plastics has a solid presence in the Midwestern and Northeastern United States. It employs some 800 specialized employees in three plants: one in Martinsburg, West Virginia, and two in Plymouth, Indiana. It has a distribution network of plumbing wholesalers and a 35-year-plus reputation for quality and service. Aker Plastics will also provide MAAX with a strategic stronghold in the U.S. North East and Midwest while making it one of the top three manufacturers of fibreglass and acrylic bathroom products in the entire United States.
""This major acquisition brings MAAX much closer to its main strategic objectives in the United States, which are to strengthen its distribution network of plumbing wholesalers, gain a strong, well-recognized brand, broaden its sales coverage, secure a powerful vehicle to step up the rollout of MAAX's product lines, and thereby help increase our market share,"" said Andre Heroux, President and Chief Executive Officer of MAAX. He added: ""We are particularly pleased that Aker's key executives will continue to manage the business. That will be an invaluable asset in terms of expertise, market knowledge, customer loyalty, and high customer service standards.""