Wajax Corporation

Wajax Corporation

May 02, 2011 08:29 ET

Wajax Announces Acquisition of Harper Power Products Business

TORONTO, ONTARIO--(Marketwire - May 2, 2011) - Wajax Corporation (TSX:WJX) announced that effective today its Wajax Power Systems division has acquired the assets of Harper Power Products Inc. ("Harper") for $21.6 million, subject to post-closing adjustments. For the year ended December 31, 2010, Harper had adjusted annual sales of approximately $71 million.

Wajax Power Systems will assume the operation of Harper's 10 branches in Ontario located in Toronto, Ottawa, Hamilton, London, Sudbury, Timmins, Kingston, Cornwall, Niagara Falls and Pembroke. Harper is the authorized Ontario distributor for Detroit Diesel, Mercedes-Benz, MTU and Deutz engines, MTU onsite generator sets and Allison transmissions. With the exception of Deutz engines, Wajax Power Systems is presently the authorized distributor of these lines in the rest of Canada except for portions of British Columbia. This business will be rebranded as Wajax Power Systems.

The business and assets of Harper Truck Centers Inc., a separately operated on-highway truck dealer in the Greater Toronto Area, and Harper's Thomas Built Bus business, were not included in the purchase transaction.

Commenting on the acquisition, Neil Manning, President and CEO stated: "This is a very significant acquisition for Wajax Power Systems. Through Harper's established business, we are gaining a significant presence in the Ontario market where we previously had limited coverage. It also represents a major step towards attainment of the division's strategic objective to become a national total power systems solution provider."

Wajax is a diversified corporation that has three core distribution businesses engaged in the sale and after-sales parts and service support of mobile equipment, industrial components and power systems, through a network of 118 branches across Canada. Its customer base spans natural resources, construction, transportation, manufacturing, industrial processing and utilities.

Forward-Looking Statements

This news release contains forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions.

Although we believe that the expectations represented in such forward-looking statements are reasonable, there is no assurance that such expectations will prove to be correct. Undue reliance should not be placed on forward-looking statements, as a number of factors could cause the actual results to differ materially from the expectations expressed in the forward-looking statements. Information on risk factors is included in the Management's Discussion and Analysis for the year ended December 31, 2010 under the heading "Risk and Uncertainties", and in other reports filed by Wajax Income Fund and the Corporation with Canadian securities regulators and available at www.sedar.com.

Contact Information

  • Wajax Corporation
    Neil Manning
    President and Chief Executive Officer
    (905) 212-3300

    Wajax Corporation
    John Hamilton
    Chief Financial Officer
    (905) 212-3300