October 17, 2018 – Toronto-based industrial products and services provider Wajax Corporation has acquired all of the Montreal-based Groupe Delom Inc. for $51.8 million.
Founded in 1963, 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.
Wajax says the acquisition of Delom is expected to provide growth in its Engineered Repair Services (ERS) business. Founded in 1858, Wajax operates an integrated distribution system providing sales, parts and services to a customers in construction, forestry, mining, industrial and commercial, oil sands, transportation, metal processing, government and utilities and oil and gas.
For the twelve months ended September 30, 2018, Delom had revenues of approximately $69.4 million and adjusted EBITDA of approximately $8.5 million. The acquisition is expected to be immediately accretive to Wajax shareholders in an anticipated range of $0.10 – $0.15 for the 2019 financial year, on an earnings-per-share basis.
“We are extremely pleased to welcome Delom and its team of dedicated professionals to our company,” says Mark Foote, president and CEO of 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.”
Mario Montpetit, president of Groupe Delom Inc., says, “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.”
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