Minnesota company purchases Paris modular home builder
Aetrium Inc., a publicly traded company based in St. Paul, Minn., has acquired privately held KBS Building Systems Inc. of South Paris for $10.5 million.
In a company press release announcing the deal, Aetrium reported that it will pay $5 million cash for the South Paris modular home company and has a wholly owned subsidiary that will pay a six-month $5.5 million promissory note. The company’s purchase agreement also includes the assumption and paying off of approximately $1.4 million in debt, according to the release.
The acquisition was financed by $6.5 million in loans from Lone Star Value Investors LP, an investment fund managed by Jeffrey E. Eberwein, chairman of the board of directors of Aetrium. Of the loan amount, $500,000 will be convertible into Aetrium common stock.
The Lewiston Sun Journal reported that Steve Miller, controller and secretary at KBS, said there are no layoffs or other changes expected for the company, which has 203 employees working at manufacturing facilities in South Paris and Waterford. Miller told the newspaper that the company’s name is expected to change to KBS Builders.
Last year, KBS partnered with Consigli Construction Co. Inc.'s Maine division to build the modular units for Consigli’s $20.7 million student housing project at the private liberal-arts Trinity College in Hartford, Conn.
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