Construction products fabricator Canam Group Inc. said Tuesday it has signed a definitive agreement to purchase an additional 65 per cent membership interest in structural steel fabricator FabSouth for US$65 million.
Construction products fabricator Canam Group Inc. said Tuesday it has signed a definitive agreement to purchase an additional 65 per cent membership interest in structural steel fabricator FabSouth for US$65 million.
The transaction is subject to regulatory approvals in the U.S.
Once the approvals are obtained, Canam Group will own 80% of FabSouth.
Under the terms of the agreement, Canam Group plans to acquire the remaining 20% membership interest over a three-year period, starting in 2011, for an aggregate amount ranging between US$15-$25 million.
FabSouth operates six plants located in Florida, North Carolina and Georgia.
FabSouth's annual sales averaged more than US$325 million between 2007 and 2009. The company currently has 500 employees.
The newly acquired entity will operate under the same company name as a business unit of Canam Group.
Canam has close to 3,000 employees in Canada, the U.S., Romania and India, and has partnerships with companies in Saudi Arabia, the United Arab Emirates and China.
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