New Flyer Industries Inc. announced that it has acquired Carlson Engineered Composites Inc. and the assets of its U.S.-affiliated companies, a privately-owned composites company, headquartered in Winnipeg, Manitoba for $13 million, subject to certain normal and customary purchase price adjustments.
Carlson manufactures fiberglass reinforced polymer (FRP) components primarily to original equipment manufacturers of transportation vehicles and agricultural equipment, with 2016 sales exceeding $38 million. Carlson currently employs over 300 people at three production facilities totaling 235,000 square feet and located in Winnipeg, MB; St Cloud, Minn. and Anniston, Ala.
Carlson’s business began in 1985 with industrial and custom part fabrication, from which evolved a line of fibre-glass reinforced plastic (FRP) water and sewage tank manufacturing. The business later expanded with the introduction of a line of truck caps and other recreational vehicle parts. Carlson then became involved in the development and supply of FRP parts and sub-assemblies to the transportation industry.
“The acquisition of Carlson will allow us to control of one of the more critical commodities in our manufacturing supply chain”, said David White, New Flyer Group’s executive VP, Supply Management. “As we think about the businesses of Carlson and Frank Fair Industries Ltd., the Winnipeg FRP business owned by Motor Coach Industries Limited since 1991, we can explore sharing best practices in composite part manufacturing, optimizing processes, and pursuing new technologies.”
White further explained, “This acquisition follows on the very successful repatriation and in-sourcing of various metal part fabrication, machining and painting operations across the company to control quality, improve delivery performance and reduce costs for our bus manufacturing operations. Carlson’s U.S. facilities will also contribute to the company complying with the increasing U.S. content requirements under increased Buy America regulations resulting from the 2015 FAST Act for the purchase of transit buses and motor coaches by U.S. federally-funded transit agencies.”
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