Empire Industries, a manufacturer and distributor of specialized engineered products, had signed a definitive agreement for selling its Hopkins steel works plant in Welland and Empire Iron Works structural steel fabrication facility in Winnipeg to the biggest steel fabrication company of western Canada, the Supreme Group.
This definitive agreement is a cash transaction of approximately $3.8 million including the selected working capital’s value. This cash transaction between the parties is scheduled on 31 December of the current year, under the typical commercial closing terms along with a regulatory approval.
The company will primarily participate in the structural steel industry through its Dynamic Structures Plant in Port Coquitlam and Empire Iron Works plant in Edmonton. Guy Nelson, Empire Industries’ Chief Executive Officer, stated that the company will continue its focus on steel fabrication market having distinct advantages including the oil sands industry in Alberta. Nelson said that the company’s partnership with the Athabasca Chipewyan First Nation in Ft. McMurray keeps it as one of the fast emerging industrial markets in North America. Nelson added that the company will introduce a highly competitive, increased quality fabricated steel into the industrial market in Alberta from its Chinese joint venture.
John Leder, Supreme Group’s President said that the Empire Iron Works functioning begun in 1958 in Winnipeg had a promising track record of functioning in this local industry. Leder stated that the working plants in Ontario and Manitoba have a legacy of manufacturing superior grade fabricated steel, that correspond to other steel fabrication plants located around western Canada.
This cash transaction’s progress will be used to strengthen liquidity as well as decrease the bank debt.
Source: http://www.empind.com