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Canadian distributor Wajax Corp. (TRX: WJX), has agreed to acquire Montreal, Quebec-based Wilson Machine Co. Ltd, for C$5 million (US$3.7 million).
Wilson manufactures and repairs precision rotating machinery and gearboxes. It has annual sales of C$6 million (US$4.5 million), and its major customers in eastern Canada align with Wajax’s existing customer base.
The company reported sales for 2015 of C$1.3 billion (US$965.6 million), a 12.3 percent decrease compared to the previous year. The company reported a loss of C$11 million (US$8.2 million), down from a profit of C$41.2 million (US$30.6 million) in 2014.
In the fourth quarter, sales were C$324.4 million (US$241 million), a decrease of 16 percent compared to the same period a year ago. The company reported a loss of C$33.3 million (US$24.7 million), down from a profit of C$11.2 million (US$8.3 million) in 2014.
Wajax also said that in 2016 it "will be transitioning from its current three independent product divisions to a leaner and more integrated organization. The new organization will be based on three main functional groups: business development, service operations and vendor development." That restructuring will result in a 10 percent headcount reduction, the company said.