 |
 |
||||||
[April 2002]
Brampton Brick Announces Major Acquisition
Brampton Brick Ltd (Brampton, Ontario, Canada) announced on 23 April 2002 that it had entered into an agreement to acquire - in conjunction with a consortium of investors - the concrete paving stone and retaining wall business of Lafarge North America Inc. The assets to be acquired include two manufacturing plants in the Province of Ontario - in Markham and Milton - and one in Wixom, MI, USA. Sales depots are located in London, Ontario and Cincinnati, OH, USA. The business also manufactures and sells various erosion control and curbing products.The aggregate purchase price is CDN $60 million plus working capital. The acquisition will be completed through newly incorporated Canadian and US subsidiaries which are 63% owned by Brampton Brick. The remaining 37% is held by the consortium of investors. Brampton Brick will be responsible for the day-to-day management.
Net sales of the acquired business in each of the past two years were around $27 million. Brampton Brick anticipates that its 63% interest in the net income of the new business, after taking into account financing costs of its $31.5 million investment, will contribute approximately $0.15 per share, on an annualised basis, to the consolidate net income.
Brampton Brick is Canada's second largest producer of clay brick and also holds a 38.2% interest in the largest producer of concrete block in Ontario.
ENDS