Harris Steel acquires 3 Canadian rebar installers
Harris Steel Group on Monday (May 2) announced the signing of definitive agreements to acquire three businesses under separate transactions.
The three companies, Universal Group of Steel Companies, Windance Reinforcing, and Northwest Reinforcing (1998) Ltd., supply
rebar installation services on a sub-contract basis in Alberta and/or British Columbia. All three are private companies that have been providing installation services in Western
Canada for many years.
"In
Canada and the Southwestern United States, we sell
rebar on an installed basis," explained John Harris, CEO and Chairman of Harris Steel Group. "In Western
Canada, we have since 1996 sub-let the installation component to a group of sub-contractors, but principally these three companies. Our industry faces persistent labor shortages which are exacerbated in Western
Canada by the strength of the energy and commodity cycles. These
investments offer not only an attractive return, but will allow
us to enhance a seamless service experience for our customers."
All three transactions are expected to close within the next thirty days, and will be reflected in the companys second quarter financial reporting.
Harris Steel Group, through its subsidiaries, is engaged in the
fabrication and placing of concrete reinforcing steel; the
production and marketing of epoxy-
coated reinforcing steel; the design and installation of concrete post-tensioning systems; the manufacture and
distribution of
wire and
wire products, welded
wire mesh and cold finished bar; and the manufacture and
distribution of heavy industrial steel grating, aluminum grating and expanded metal. The company serves all of
Canada, and the eastern, central and western United States. In early 2004,
Nucor Corporation entered into an agreement with Harris Steel Group for the purchase of a one-half interest in its wholly owned subsidiary, Harris Steel, Inc., for a cash purchase price of approximately
US$21000000.