Metriguard, established in 1972, is a world leader in high speed strength grading technology for lumber and veneer and sells and provides services for its equipment globally. It has installations in North and South America, Europe, Asia, Africa, Australia and New Zealand and its business will continue by a newly established Raute’s subsidiary Metriguard Technologies Inc.
The acquisition is made as an asset purchase. Intangible assets, working capital and fixed assets, except real estate, are acquired. Metriguard’s personnel will transfer in along with the acquisition.
The purchase price, estimated at US$4.5m, is paid in two instalments. A base purchase price of US$3.1m is paid at closing, additionally there will be an earn-out payment based on net sales for a 12-month period following closing of the transaction.
