As part of its aggressive growth plan, Axios Mobile Assets Corporation has announced its entry into negotiations to acquire a majority interest in a Guelph, Ontario-based thermoset molder and assembler of composite products for the consumer and industrial markets. The acquisition will substantially expand Axios’ current toll manufacturing capacity and product development capabilities. The acquisition provides Axios with production resources that will support current requirements under a recently signed $300 million (USD), five-year contract with Ongweoweh, a leading pallet procurement organization.
In addition to the manufacturing facility, through the acquisition Axios will gain a team of molders and custom material compounders with substantial experience in the industry. The Guelph facility, located just west of Toronto, will provide molding and automated assembly for Axios’ innovative pallet products. It also will serve as a research and development center for the next generation of Axios products. The agreement is expected to close in September, and manufacturing operations are expected to begin in October.
“This combination of manufacturing capacity, industry expertise and research capability is a strategic step forward for Axios that will accelerate the development of our next generation pallets and enable us to provide our shareholders with the best use of capital through the ideal mix of both in-house and outsourced production,” said Richard MacDonald, president and chief executive officer. “As our business grows, we look forward to providing Ongweoweh and other customers with our innovative and unique pallet solution manufactured in this facility, while at the same time conducting next generation product research and development.”
The operation has current annual production capacity of 200,000 pallets and room for expansion and job creation as Axios adds to its customer base and backlog of orders.