Wajax Acquires Groupe Delom
Wajax Corporation announced that it has acquired all of the issued and outstanding shares of Montréal, Québec-based Groupe Delom Inc.
"We are extremely pleased to welcome Delom and its team of dedicated professionals to our company," said Mark Foote, President and CEO, Wajax. "The addition of Delom not only enhances our ERS service offering and value proposition to existing customers, it also satisfies each of the criteria we have outlined in our updated acquisition strategy, which includes enhanced EBITDA margins, advancement of our corporate strategy and scale to drive further growth."
Pursuant to the terms of the share purchase agreement entered into between Wajax, Delom and Delom's direct and indirect shareholders, the aggregate purchase price for the shares was $51.8 million, with $2.0 million of such purchase price remaining subject to the achievement of certain performance targets post-closing.
Delom specializes in the maintenance and repair of critical electromechanical and rotating equipment for continuous process industries. Serving customers in diverse end markets, including hydroelectric, wind and nuclear power generation, mining, pulp and paper, petrochemical, aluminum smelting, and rail and marine transportation, Delom has six branches across Eastern Canada and employs more than 350 people.
"Joining Wajax provides our team with significant opportunities to grow our volume nationally, leveraging the Wajax branch network and extensive sales and marketing infrastructure. Combining Delom's electromechanical motor expertise with Wajax's hydraulics, process, bearings and power train capabilities offers customers a value proposition unique in the marketplace. As well, Wajax's commitment to its employees and customers is entirely aligned with the Delom philosophy and we're excited to be a part of the organization," said Mario Montpetit, President, Groupe Delom Inc.