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M&A / Property

ADF GROUP INC. PROVIDES AN UPDATE FOLLOWING THE ACQUISITION OF LAR GROUP INC.

By The Northwire Desk — AI Analysis Oct 29, 2025 · 07:00 DRX · 7.32 ADF GROUP INC. SV
DRX · Price

Executive Summary

  • ADF Group Inc. completed the acquisition of Groupe LAR Inc. on September 18, 2025, paying a total consideration of C$20.4 million (C$16.4 M cash plus C$4 M in Subordinate Voting Shares).
  • The deal includes a C$1.4 M working‑capital adjustment and is expected to double LAR’s order backlog to roughly C$208 M by January 31, 2027.
  • ADF plans to invest over C$35 M in LAR’s main fabrication plant within the next 24 months to expand capacity and modernize equipment.

Key Details

  • Consideration Paid:
  • Cash: C$16.4 million (includes C$1.4 million working‑capital adjustment).

  • Equity: 449,944 Subordinate Voting Shares valued at approximately C$4 million based on the average closing price during the five trading days prior to August 29, 2025.

  • Order Backlog:

  • LAR’s backlog stood at C$104.5 million as of July 31, 2025.

  • ADF aims to double this figure to roughly C$209 million by the end of fiscal year ending January 31, 2027.

  • Revenue History (LAR):

  • FY ended December 31, 2024 revenue: C$80.9 million.

  • Planned Capital Investment:

  • Over C$35 million to be deployed at LAR’s Saguenay‑Lac‑Saint‑Jean plant within the next 24 months.

  • Construction of new buildings slated to start April 2026, with equipment delivery expected by December 2026.

  • Employment Impact:

  • Current workforce at LAR plant: ~200 employees.

  • Anticipated increase in headcount as part of the expansion (exact numbers not disclosed).

  • Strategic Rationale:

  • Leverage growing Canadian hydro‑electric projects (Hydro‑Québec’s C$35 billion investment plan through 2035) and potential U.S. tariff‑driven demand for domestic suppliers.

  • Expected operational synergies, efficiency gains, and diversification of ADF’s product offering.

  • Conference Call:

  • Investor call held on October 29, 2025 at 10:00 a.m. Montreal time; replay available until November 5, 2025.

Notable Quotes

“We are convinced that this Transaction will create significant synergies … and will have a positive contribution to ADF's net results,” – Jean Paschini, Chairman & CEO.

“Both companies share common values and we intend to leverage our experience … to grow the consolidated revenues and results for the benefit of our shareholders.” – Jean Paschini, Chairman & CEO.

Read the original news release →

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