Wajax Acquires Harper Power Products

Wajax Acquires Harper Power Products

Toronto, Ontario (May 2, 2011) Wajax Corp.'s Wajax Power Systems division has acquired the assets of Harper Power Products Inc. for $21.6 million, subject to postclosing adjustments. For the year ended December 31, 2010, Harper had adjusted annual sales of approximately $71 million.

Wajax Power Systems will assume the operation of Harper's ten branches in Ontario located in Toronto, Ottawa, Hamilton, London, Sudbury, Timmins, Kingston, Cornwall, Niagara Falls and Pembroke. Harper is the authorized Ontario distributor for Detroit Diesel, Mercedes-Benz, MTU and Deutz engines, MTU Onsite Energy generator sets and Allison transmissions. With the exception of Deutz engines, Wajax Power Systems is presently the authorized distributor of these lines in the rest of Canada except for portions of British Columbia. This business will be rebranded as Wajax Power Systems.

The business and assets of Harper Truck Centers Inc., a separately operated on-highway truck dealer in the Greater Toronto Area, and Harper's Thomas Built Bus business, were not included in the transaction.

Commenting on the acquisition, Neil Manning, president and CEO said: "This is a very significant acquisition for Wajax Power Systems. Through Harper's established business, we are gaining a significant presence in the Ontario market where we previously had limited coverage. It also represents a major step towards attainment of the division's strategic objective to become a national total power systems solution provider."

Wajax is a diversified corporation that has three core distribution businesses engaged in the sale and after-sales parts and service support of mobile equipment, industrial components and power systems, through a network of 118 branches across Canada. Its customer base spans natural resources, construction, transportation, manufacturing, industrial processing and utilities.