EDMONTON, Alta. — Raydan Manufacturing announced it has signed a letter of intent to purchase a profitable Ontario-based firm consisting of two divisions, a chassis modification centre and a heavy truck parts and service division, with approximately $6 million in combined revenue.

“Raydan’s primary source of revenue is the vocational truck market,” stated Ray English, president and CEO. “This acquisition is in line with our strategy to gain access to the Ontario marketplace, the gateway to the North American truck and heavy equipment industry. Purchasing an existing company provides us with important customer contacts and valuable management and staff familiar with the area and its needs.”

The total purchase price of the transaction is approximately $2.3 million consisting of cash, common stock and a vendor take back note pending completion of due diligence by Raydan. The acquisition is scheduled to close March 31 and is subject to receiving all board and exchange approvals.