BUSINESS

Manac reviews strategic options, including possible sale of truck trailer maker

03/30/2015 11:45 EDT | Updated 05/30/2015 05:59 EDT
ST-GEORGES, Que. - Manac Inc., which bills itself as Canada's largest truck trailer manufacturer, said it's reviewing strategic options including a sale of the company.

The move comes just 18 months after it completed an initial public offering that netted the company about $40 million in gross proceeds, about half of which was used to repay debt.

Manac's stock (TSX:MA) set a 52-week high of $9.40 in early Monday trading. It was up 26 cents or nearly three per cent at $9 later in the morning trading session on the Toronto Stock Exchange, giving the company a market value of about $42.86 million.

The Quebec-based company, which makes specialty trailers such as grain hoppers and logging trailers sold across North America, said it would also consider a merger or another business transaction.

Manac said its operations will be unaffected by the strategic review and there's no assurance any deal will result.

The company began operations in 1966 and acquired Canam Steel (TSX:CAM) in 1972.

In 2004, Canam Manac sold the semi-trailer business to the founding Dutil family. After going public, its largest owners are the Quebec Federation of Labour's Solidarity Fund, the Caisse de depot et placement du Quebec and Fiera Capital, which together own 41 per cent of its shares, according to Thomson Reuters.

Manac acquired B.C.-based Peerless Ltd. last summer for $14.75 million.

Its net income decreased 26 per cent to $9.7 million last year despite higher revenue at $330.7 million due to the addition of Peerless. Manac's backlog reached a record $173.5 million.