ADF Group has agreed to acquire Groupe LAR, a Canadian firm specialising in the machining, welding, and industrial mechanics sectors.
Established in 1942 in Quebec, LAR is focused on designing and installing steel structures and offers customised overhead crane solutions for the heavy industry.
The company reported revenue of C$80.9m for 2024, and an order backlog of C$104.5m as of 31 July 2025, which is expected to be fulfilled by 31 January 2027.
Under the terms of the agreement, ADF will purchase Groupe LAR for C$19m, with adjustments based on working capital expenses.
ADF will pay C$15m in cash and issue shares valued at C$4m. The company plans to fund the cash portion of the acquisition using available cash
The transaction is subject to approval from the Superior Court of Quebec, Canada. It is anticipated to close shortly after court approval.
ADF Group CEO and board chairman Jean Paschini said: “We truly believe that this transaction will create significant synergies between our two groups.
“It will have a positive contribution to ADF’s net income and will diversify ADF’s offering in the context of US tariff threats, while allowing to maintain 200 well-paying jobs in the greater Saguenay-Lac-Saint-Jean region and even grow this number.”
ADF, specialising in steel structure fabrication, operates in Canada and the US, managing complex megaprojects across various sectors.
The company intends to proceed with the acquisition through a reverse vesting order in connection with Groupe LAR’s restructuring.
The process will be supervised by the Court, and a monitor will be appointed.
The closing of the proposed transaction is subject to customary closing conditions, including approval from the Toronto Stock Exchange.
