Raydan Manufacturing Inc. announced that it has completed the acquisition of Delta Spring & Chassis Ltd., located in Kitchener, Ontario. Delta supplies component parts, provides spring shop services and manufactures and installs truck mounted components through Sturdy Truck Body to the light commercial and heavy truck/trailer industry throughout southwestern Ontario.
Stated Ray English, President and CEO, “Delta adds $6 million to Raydan’s revenue base and positions us solidly in Ontario; the gateway to the North American truck and heavy equipment industry,” He continued, “The majority of Class 8 vocational trucks (Raydan’s major market) that are sold in Canada operate out of Ontario. This acquisition expands our customer base and gives us access to a skilled labor pool. Of special note is that the acquisition places us in close proximity to Eastern based Canadian military projects and Eastern US customers who have interest in Raydan’s products and services.”
To provide a full range of products and services to its customers, Raydan will expand the operations and enter into a leaseback agreement with the present landlord to design-build a new facility in Kitchener, Ontario. The new complex will increase Delta’s operating capacity by 47% by expanding from 17,000 to 25,000 sq ft.
“For more than thirty years Delta Spring & Chassis and Sturdy Truck Body have been offering truck equipment, parts and service to the Commercial Vehicle market in Ontario,” stated Brian Ahrens, Director of Eastern Operations. “The acquisition by Raydan strengthens our common interests and gives us a national presence. Offering Raydan’s unique products in the eastern market provides for exciting times and I am pleased to be part of Raydan’s future growth.”
The purchase price of the transaction was $2.3million, consisting of $1 million in cash, $620,000 in common stock, (766,629 shares) and a vendor take back note of $620,000.