NANAIMO, BC, Jan. 18, 2021 /CNW/ - Atlas Engineered Products Ltd. ("AEP" or the "Company") (TSX-V: AEP) (OTC Markets: APEUF) announced today that the Company has reached an agreement with ZyTech Building Systems LP ("ZyTech") to acquire the bulk of ZyTech's manufacturing assets from its former Langley location in the Lower Mainland of British Columbia.

"Last year we increased our footprint in British Columbia by expanding into the Lower Mainland through Novum Building Components Ltd. ("Novum") and by adding a pre-manufactured wall plant at our Atlas Building Systems Ltd. operations in Nanaimo on Vancouver Island.  Now with this asset purchase from Zytech, we are adding advanced technology equipment to our business, and it will improve our profitability at several locations," said Dirk Maritz, AEP's CEO & President.

"During 2020, the BC construction industry experienced minimal impact, which made the continued expansion of our BC operations a priority. ZyTech's decision to focus on its Alberta and US assets marks the departure of a local industry competitor and also yields an opportunity to bolster our Vancouver Island and Lower Mainland facilities. These equipment additions are anticipated to result in significant increases in efficiency and further strengthen our position as a full service solutions provider. We have worked exceptionally hard to position ourselves in this way and we are proud to be offering a full and expanded range of products including pre-manufactured wall-panels, manufactured floor trusses, I-joists, LVL options, open web floors, roof trusses and other engineered wood products to the very large and buoyant BC market," continued Mr. Maritz.

The equipment purchase is expected to close on January 31, 2021 at a purchase price of $958,160, which is below replacement or market value. The Company paid ZyTech a deposit of $100,000 upon execution of the agreement, and may take possession of the equipment prior to closing. The equipment will be installed at the Company's Novum and Atlas Building Systems locations starting in Q1 2021 and is expected to be ready for the 2021 peak building season. In addition to acquiring this equipment, AEP will be completing several supply contracts for a number of ZyTech's clients.

"Along with our new banking and financing deal that was previously announced, this equipment acquisition positions us to start 2021 with a significant next step in our organic growth plan," commented Interim CFO, Melissa MacRae. "In the high-growth BC market, it is a priority to drive our organic growth initiatives because it is inexpensive and value adding. With our focus on efficiencies, productivity, economies-of-scale, and buying power optimization, we are confident we can deliver on our growth and profitability targets."

About Atlas Engineered Products Ltd.

AEP is a growth company that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry. We have a well-defined and disciplined acquisition and operating growth strategy enabling us to scale aggressively, giving us a unique opportunity to consolidate a fragmented industry of independent operators.

FORWARD LOOKING INFORMATION
Information set forth in this news release contains forward-looking statements. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. Although AEP believes that the expectations reflected in the forward looking statements are reasonable, there is no assurance that such expectations will prove to be correct, or that such future events will occur in the disclosed time frames or at all.  AEP cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond AEP's control.  Such factors include, among other things: Risks and uncertainties relating to AEP, including those to be described in the Management's Discussion and Analysis ("MD&A") for AEP's year ended December 31, 2019 and for the interim period ended September 30, 2020.  Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, AEP undertakes no obligation to publicly update or revise forward-looking information.

This news release may also include future oriented financial information and financial outlooks (collectively, "FOFI") with respect to expected future revenues, profitability and cost reductions.  The FOFI contained in this news release is subject to the same assumptions, risk factors, limitations and qualifications relating to other forward-looking statements contained in this news release.  The FOFI contained in this news release is provided for the purpose of providing information regarding management's assessment of the Company's anticipated business operations, and may not be appropriate for other purposes.

Except as required under applicable securities legislation, AEP undertakes no obligation to publicly update or revise forward-looking information, including FOFI.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE Atlas Engineered Products Ltd.

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