Armtec Infrastructure awarded long-term contract to supply infrastructure products to BC Hydro
Guelph, Ontario -- Armtec Infrastructure Inc. ('Armtec' or the 'Company') (TSX: ARF and ARF.DB) today announced it has been awarded an exclusive long-term contract to supply utility vaults and associated products related to precast underground infrastructure for British Columbia Hydro and Power Authority ('BC Hydro'). The contract, valued at approximately $40 million based on a nine-year period, is fixed for a term of five years with the option to extend the agreement for up to two additional successive periods of two years each. As part of the due diligence associated with this arrangement, Armtec successfully demonstrated both its operational depth and capability, and its financial ability to meet the needs of the client over the long term.
The award bolsters the Company's Construction and Infrastructure Applications (CIA) business volumes and is part of an encouraging trend of new business opportunities being seen in regions across Canada. On the Engineered Solutions (ES) side of the business, new projects are anticipated to add up to another $50 million in bookings in the fourth quarter with improved bidding margins.
The Company's new financing arrangement recently entered into with a Brookfield Asset Management company is an important milestone in the process of deleveraging the balance sheet. With this financing completed, Armtec's management team is focused on making operational improvements, and increasing profitability.
'We are pleased to have been appointed the exclusive long-term supplier to BC Hydro with our high quality precast underground infrastructure products,' said Charles Phillips, President and Chief Executive Officer. 'The long-term agreement builds on Armtec's prior relationship with BC Hydro as we continue to provide them a unique level of service to greater enhance their business. For more than 25 years, we have had a valued working partnership with them and we look forward to expanding this important relationship going forward.'
ABOUT ARMTEC INFRASTRUCTURE INC.
Armtec is a leading manufacturer and marketer of a comprehensive range of infrastructure products and engineered construction solutions for customers in a diverse cross-section of industries that are located in every region of Canada, as well as in selected markets globally. These markets include Canada's national and regional public infrastructure markets and private sector markets in agricultural drainage, commercial building, residential construction and natural resources. Operating through its network of regional offices and production facilities across the country, Armtec's broad range of engineered solutions include products for drainage, bridge applications, soil retention, rehabilitation and water management systems including corrugated high-density polyethylene, corrugated steel and concrete pipe; an array of architectural and structural precast and pre-stressed concrete products from steps, paving stones, slabs and wall panels to highly engineered structural components designed and installed for projects such as bridges, sports venues and parking garages; and a full suite of noise barriers, acoustic enclosure and wall systems along with associated retaining wall and traffic barrier systems.