WesternOne Equity Income Fund yesterday announced plans to acquire Langley-based Britco Structures LLP and Britco Leasing Ltd. for $93 million.
Britco is one of the largest Canadian designers and manufacturers of commercial portable and permanent modular buildings. It owns one of the largest rental fleets of modular buildings in western Canada with approximately 1,200 buildings.
According to Vancouver-based WesternOne Equity (TSX:WEQ.UN,WEQ.DB,WEQ.DB.B) it wants to acquire construction and infrastructure services business to generate stable and growing distributions for its unitholders and increase overall capital appreciation.
WesternOne management expects the acquisition to be immediately lucrative to its unitholders based on Britco’s projected earnings of $15 million in 2011.
Darren Latoski, CEO of WesternOne Equity, said, “The addition of the Britco business further establishes us as an integrated construction and infrastructure services provider.
“It gives us access to a wider customer base, including the high growth energy and mining sectors in Alberta and British Columbia, and business opportunities in other markets in North America and abroad. The economies of scale will also help improve our information technology infrastructure and leverage sales and marketing efforts.”
WesternOne stated in a release that current owners Rick McClymont and David Taft, who co-founded Britco in 1977, will remain as consultants to facilitate the transition, while Britco executive vice-president Mike Ridley will assume the role of president of the Britco Business once the acquisition is complete.
The deal is expected to close on June 7.
Jennifer Harrison