Wajax Corporation completed the acquisition of Tundra Process Solutions Ltd.
January 21, 2021
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Wajax Corporation (TSX:WJX) entered into a definitive agreement to acquire Tundra Process Solutions Ltd. for CAD 96.7 million on December 30, 2020. Pursuant to the terms of the definitive agreement, the purchase price for the Tundra shares will be satisfied by the payment in cash of CAD 74.6 million and the issuance of 1.35 million common shares of Wajax. To fund the cash portion of the purchase price Wajax has entered into an agreement with the lenders under its existing credit facilities for a CAD 50 million acquisition credit facility. For the twelve months ended November 30, 2020, Tundra had revenues of approximately CAD 147.8 million. Tundra's team of dedicated professionals will be joining Wajax. The transaction is subject to customary closing conditions, including the approval of the TSX and approval under the Competition Act (Canada), as well as normal post-closing adjustments. The transaction is expected to close early in the first quarter of 2021. The acquisition is expected to be immediately accretive to Wajax shareholders in an anticipated range of CAD 0.10 – CAD 0.15 for the 2021 financial year, on an earnings per share basis. PricewaterhouseCoopers LLP and Scotiabank acted as financial advisors to Wajax Corporation. Deloitte Corporate Finance Inc. served as a financial advisor to Tundra. Bennett Jones LLP acted as legal advisor to Tundra Process Solutions.
Wajax Corporation (TSX:WJX) completed the acquisition of Tundra Process Solutions Ltd. on January 22, 2021. As part of the transaction, all key members of Tundra’s senior management team will continue in their present roles.
Wajax Corporation is a Canada-based diversified industrial products and services provider. The Company operates an integrated distribution system providing sales, parts and services to a broad range of customers in various sectors, including construction, forestry, mining, industrial and commercial, oil sands, transportation, metal processing, government and utilities, and oil and gas. The Company provides various equipment, such as compact excavators, dump trucks, excavators, wheel loaders and wheeled excavators. It offers various brands, such as Hitachi, Hyster, MTU, Allison Transmission, Danfoss, SKF and Tigercat. Its solutions include mechanical solutions, hydraulic solutions, process solutions, electromechanical solutions, repair and solutions, and reliability solutions. It provides various industrial parts, including bearings, bulk material handling, electric motors and variable frequency drives, filtration, fluid handling, instrumentation, pneumatics, and power transmission.