Empire Industries Ltd. Acquires Dynamic Structures
08.10.2007
Empire Industries Ltd. Acquires Dynamic Structures
Toronto, Ontario, April 17th, 2007 - Empire Industries Ltd., symbol EIL on TSX.V.("Empire"), one of Western Canada's fastest growing steel fabrication and construction service providers, today announced that it has purchased all the issued and outstanding shares of AMEC Dynamic Structures Ltd. (www.dynamicstructuresltd.com) from AMEC Inc. ("AMEC"). The name of the company has been changed to Empire Dynamic Structures Ltd. ("Dynamic Structures").
The purchase price was $9.8 million plus working capital and was paid for with a combination of cash and promissory notes. The purchase price included a fully equipped, 61,000 square foot steel fabrication shop on 10 acres of owned land in Port Coquitlam, B.C.
In the prior year, Dynamic Structures generated revenue of $21 million and employs approximately 60 shop employees, 30 billable engineering and drafting employees and 20 sales, administrative and management employees. Two of the major contracts currently being performed by Dynamic Structures have been assigned to a 50/50 joint venture between AMEC and Dynamic Structures. There is a third major steel fabrication contract to build two ski jumps in Whistler, B.C. for the upcoming winter games in 2010. It is in the early stages of fabrication and will be completed before year-end. Dynamic Structures current backlog, including its 50% share of the two joint ventures, is $25 million.
Dynamic Structures has been in operation since 1926 and has become one of the world's premier providers of movable (dynamic) structures. Using value analysis and engineering, Dynamic Structures develops effective strategies to cover all aspects of complex, structural and mechanical system projects right through design, fabrication and on-site construction. Dynamic Structures has an enviable reputation in providing these services to the global amusement ride industry, the global telescope observatory market and the western Canadian steel fabrication market.
"The acquisition of Dynamic Structures adds much needed steel fabrication capacity to Empire and it significantly strengthens Empire's focus on increasing its strength in project management and quality assurance systems, increasingly required on complex fabrication projects. This acquisition also demonstrates Empire's commitment to making strategic acquisitions in high growth market niches, complimentary to those markets already served by other subsidiaries in the Empire group," stated Guy Nelson, CEO of Empire Industries Ltd.