CALGARY — Shares in industrial equipment and services provider Wajax Corp. are rising after it announced the acquisition of privately held Tundra Process Solutions Ltd. for $99.1 million.
The offer for its Calgary-based rival consists of $74.6 million in cash and 1.36 million Wajax shares in a deal is expected to close in early 2021.
Wajax shares rose by as much as 75 cents or 4.5 per cent to $17.31 in early trading on the Toronto Stock Exchange.
Mark Foote, CEO of Mississauga, Ont.,-based Wajax, says Tundra’s leadership in process control products and service for oil and gas, mining and forestry industries fits well with his company’s engineered repair service, equipment and parts business in Western Canada, adding the acquisition will also add to its offerings across the rest of Canada.
Tundra CEO Iggy Domagalski says he expects the sale to Wajax will lead to higher sales volumes.
Tundra employs about 150 people in facilities in Calgary, Edmonton and Grande Prairie, Alta., and has sales offices in Alberta, B.C. and Saskatchewan.
“We welcome Tundra and its team of dedicated professionals to Wajax,” said Foote in a joint news release.
“Our complimentary cultures of safety, customer service and product and service innovation translates into growth driven by a consistent vision of constantly increasing what we can do for our customers.”
This report by The Canadian Press was first published Dec. 31, 2020.
Companies in this story: (TSX:WJX)
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