FabSouth, a fabricator and erector of structural steel products in the United States, operates six plants located in Florida, North Carolina and Georgia. FabSouth's annual sales averaged more than US$325 million between 2007 and 2009.
Under the terms of the agreement, Canam Group undertakes to acquire the remaining 20 percent membership interest over a three-year period starting in 2011 for an aggregate amount ranging between US$15 million and US$25 million based on a weighted average EBITDA for the years 2010, 2011 and 2012.
Canam Group president and chief operating officer Marc Dutil noted that FabSouth's operations in the southern United States will enhance and complement those of the Structural-Heavy Steel Construction business unit. The newly acquired entity will operate under the same company name as a business unit of Canam Group.