PFB Corp. plans to acquire Advantage Wallsystems Inc.
The maker of insulated concrete forming systems, based in Calgary, Alberta, already holds a nearly 42 percent stake in Advantage, which does not have its own manufacturing capability. Advantage is based in Crossfield, Alberta.
The proposed deal still has to be approved by boards of directors and shareholders of each company. PFB has offered one share of its stock for 50 shares of Advantage's stock, officials said. Under that proposal, PFB will issue about 211,700 common shares to Advantage shareholders.
PFB has been the exclusive manufacturer and supplier of insulated concrete forming products for Advantage, so the acquisition makes sense, officials said.
``We want to bring our marketing expertise to help generate sales growth in Advantage,'' said Stephen Hardy, PFB's chief financial officer. ``We wouldn't expect the deal to close until around April.''
PFB is traded on the Toronto Stock Exchange; Advantage, formerly Roxi Capital Corp., is listed with the Venture Exchange on the Toronto Stock Exchange. Roxi changed its name in November.
PFB Corp. has seven foam manufacturing facilities throughout all Canadian provinces. The company employs 250. Advantage has 10 employees.
``We believe that the insulated conforming system is a system for the future. We believe that by combining the companies we can start to grow that product line,'' Hardy said.
PFB markets its own foam building products under the Plasti-Fab brand name. The Advantage insulated concrete forming system brand will be assimilated as an operating unit of PFB, officials said. PFB also produces its own resin at one facility in Crossfield, Alberta.
In its third quarter results, PFB reported sales of C$29 million (US$18 million).