Raydan buys Ontario spring and chassis maker; will boost capacity by almost 50 percent

EDMONTON — Specialized suspension and coupling systems supplier Raydan Manufacturing has completed the acquisition of Delta Spring & Chassis Ltd in Kitchener, Ont. for $2.3 million.

Delta supplies component parts, provides spring shop services and manufactures and installs truck-mounted components through Sturdy Truck Body to the light commercial and heavy truck/trailer industry throughout southwest Ontario.

“Delta adds $6 million to Raydan’s revenue base and positions us solidly in Ontario; the gateway to the North American truck and heavy equipment industry,” said Ray English, president and CEO of Edmonton-based Raydan. “The majority of class 8 vocational trucks that are sold in Canada operate out of Ontario. This acquisition expands our customer base and gives us access to a skilled labor pool.”

English said the acquisition — which is based on $1 million in cash, $620,000 in common stock — places Raydan in close proximity to eastern-based Canadian military projects and northeastern U.S. customers.

Raydan will expand the operation and enter into a leaseback agreement with the present landlord to design and build a new facility in Kitchener. The new complex will increase Delta’s operating capacity by 47 percent by expanding from 17,000 to 25,000 sq ft.

Brian Ahrens, Delta’s director of eastern operations, says the acquisition by Raydan strengthens common interests and gives the Ontario firm a national presence.

Over the past few years Raydan has seen a significant increase in the demand for tandemizations and modifications — especially in regards to the company’s own Air Link suspension for tandem steer — and has been actively looking at the Ontario market for expansion.