Wajax Corporation acquires industrial repair company NorthPoint
By P&PC Staff
By P&PC Staff
Wajax Corporation has acquired all shares in NorthPoint Technical Services ULC, headquartered in Calgary, Alberta.
The shares were acquired from an affiliate of Denver, Colorado-based Lion Equity Partners for an aggregate purchase price of $18 million.
Wajax Corporation is an industrial services provider that serves a broad range of industries including pulp and paper, forestry, construction, industrial and commercial, and oil and gas.
According to the company, the acquisition of NorthPoint is expected to provide meaningful growth in the corporation’s engineered repair services (ERS) business, which includes Montreal, Quebec–based Groupe Delom Inc., acquired by Wajax Corporation in October 2018.
NorthPoint was formed in 2018 as a national electro-mechanical services provider and serves a broad range of resource and industrial customers.
Specializing in the repair of rotating industrial equipment, including motors, generators, gearboxes, switchgear, transformers, pumps, fans and turbines, NorthPoint operates nine branches across Canada and employs approximately 177 people.
Northpoint’s branches are located in Grand Prairie and Calgary, Alberta; Regina, Saskatchewan; Winnipeg, Manitoba; Kirkland Lake, Sudbury and Sarnia, Ontario; Moncton, New Brunswick; and St. John’s, Newfoundland.
For the twelve months ended December 31, 2019, NorthPoint had revenues of approximately $49.2 million.
“We continue to view ERS as a critical part of our growth strategy as it is expected to enhance our EBITDA margins, requires a lower total working capital investment when compared to our distribution businesses and further enhances our overall value proposition to new and existing customers,” says Mark Foote, president and chief executive officer at Wajax Corporation.
Paul Crawford, chief executive officer at NorthPoint, says, “Partnering with Wajax provides our team with a significant opportunity to grow our volume nationally, leveraging Wajax’s extensive sales, marketing and customer relationships.”