Charlottetown Metal Products being acquired by B.C. company
Food Process Solutions is a global leader in turnkey food freezing and cooling equipment
A food equipment company from British Columbia is acquiring the majority shares of P.E.I.'s Charlottetown Metal Products (CMP).
Food Processing Solutions (FPS) specializes in food freezing and cooling equipment, with offices in Vancouver, the U.S., Brazil, China and the Netherlands.
"With a shared focus for hygienic design, CMP is a timely and strategic fit that will add to our capabilities in diversifying product line offerings," said Jeffrey Chang, president of FPS, in a news release.
"The acquisition accelerates our expansion in North America, as part of our global growth."
CMP has been operating in P.E.I. for over 60 years and produces custom stainless steel food processing equipment. The company employees 80 people.
No job losses
The company will continue to be run by president Trevor Spinney, who says the two companies have been talking about joining together since late 2018.
"It wasn't a financial decision, it was more how can we grow faster, how can we provide more value to our clients," he said
"We both have very similar focuses, business wise, on hygienic design and on innovation."
There are plans to double CMP's staff and revenues in the next two to three years. There is also a plan to expand the existing facility in Milton, P.E.I., which Spinney says will also need support from government to happen.
That addition would include upwards of 40 thousand square feet onto the back of the plant, which "will really set us up to serve our clients faster and with even more modern manufacturing equipment."
CMP will continue to do the work it is now, but Spinney said they are discussing taking on some of the manufacturing of FPS's products here on the east coast. That would allow Charlottetown to help serve FPS's customers in the eastern U.S. and Europe.
With the change in ownership comes more sales opportunities for CMP products as well, which compliment the freezer products FPS produces.
"We're very excited about what this means for growth," said Spinney.
The deal still has to meet approvals from the Island Regulatory and Appeals Commission, because FPS is an off-Island company.
CMP also has to get approval from ACOA, because it is currently involved in a research and development project with the association.