2242749 Ont Ltd. AIIFF

This is a huge strategic error

[Thethruthhurts]

Someone in "drainage" at Armtec dropped the ball big time with this. Inspite of the cost of the acquisition ADS will want to aggressively grow their market share and will sacrifice margin for market share while Armtec is vulnerable with such intense debt obligations. Anderson should have begged for the money to buy Ideal. My guess is that no one at Armtec believed ADS would buy ideal. One big step forward for ADS is one step closer to the end for Armtec!

[GladIMGone]

Just looked at ADS's financial report - very nice - twice the size of Armtec's and increasing rrevenues margins. Interesting thing is that international sales are growing substantially - and I would guess that most of this is Canadian. So Armtec is loosing about 20% of their total revenues to ADS now. Guessing they (Armtec) might as well just sell the HDPE products. ADS has a far superior

[MarlboroMan]

Truth - No way they get the money.  Sould have begged ADS to buy Armtec instead.

[2Greying]

I agree...could have sold the drainage division then (if brookfield and banks agree) start restructuring, selling some plants, etc Of course they would need a plan which they don't seem capable of formulating. Waiting to see about covenants....should be news soon but then Ive said that before. Pitiful how this company is managed

[Thethruthhurts]

ADS will never buy Armtec's drainage division unless its at fire sale prices. All Armtec assets belong in a pioneer museum. The company is starved for modern production technology in all its divisions. Death by a thousand cuts and wars on too many fronts will see this gang fail this year. The strong survive and those that can't adapt to new surroundings and situations -- perish.

[2Greying]

There is always more than one way to get a deal done....Management should be working on it but I'm sure they aren"t...no vision. Perhaps sell for cash and shares...likely make more on the ADS shares as they know how to run the drainage side. Granted ADS wouldn't pay much for the assets but the additional market share (with a non compete) may be enticing. Just saying that if you have