Atlas Engineered Products

Atlas Engineered Products

AEP

Last Updated On: October 12, 2018

Share Price On This Date: $0.40

Building truss manufacturer.

Summary

Atlas is a new company that made its first appearance on the public markets in November of 2017. It was created as an acquisition vehicle to roll up the building truss construction industry. There are about 300 of these small, regional roof truss manufacturing companies spread out across Canada. Many of them are run by baby boomer owners who are eyeing retirement and are keen to hand over the reigns to a company like Atlas that they can feel good about leaving in charge of the company they have worked hard to build over the years. Atlas wants to take these companies and continue to grow them, adding new capabilities and expanding their footprint.

While there are execution risks and the ever-present risk of a major housing downturn, the roll-up strategy offers the potential for rapid growth if done properly. Because it is still quite a small company and is in the very earliest stages of its planned growth strategy, I am labeling it a "hot and spicy", more speculative type of investment.

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