Alpine 4 Holdings, Inc. (ALPP) Announces the Merger of Deluxe Sheet Metal, Inc. and Morris Sheet Metal Corporation to Become One of the Largest Sheet Metal Contractors in Midwest/North Central U.S.

Rhea-AI Summary

Alpine 4 Holdings, Inc. (ALPP) announces the merger of Deluxe Sheet Metal, Inc. and Morris Sheet Metal Corporation, creating one of the largest sheet metal contractors in the Midwest. The integration of both companies is expected to enhance brand strength, improve pricing, and lower administrative expenses by nearly 7% within the first year. With over 100,000 square feet of facilities and 90 union workers, the new entity predicts revenues exceeding $50 million within 36 months. This strategic move aims to leverage complementary strengths and expand business operations across multiple states.

Positive

• Creation of one of the largest sheet metal contractors in the Midwest.
• Projected revenue exceeding $50 million within 36 months.
• Expected reduction of General & Administrative expenses by almost 7% in the first year.
• Material Cost of Goods anticipated to decrease by 5%, enhancing gross profit margin.

Negative

• None.

PHOENIX, AZ / ACCESSWIRE / March 8, 2021 / Alpine 4 Holdings, Inc., (OTCQB:ALPP), a leading operator and owner of small market businesses, announces the combination of subsidiaries Deluxe Sheet Metal, Inc. (Deluxe) and Morris Sheet Metal Corporation (Morris) to become one of the largest sheet metal contractors in the Midwest region of the United States. Both companies will be under the Morris Sheet Metal brand. Deluxe and Morris are expected to be fully integrated by May 2021.

This merger creates a more harmonious relationship between the two companies. The combining of resources empowers Morris to strengthen its brand through its strategic banking relationship, eliminate duplicative and competitive interests, and expand its footprint beyond the Indiana home base.

Morris will now have over 100,000 square feet of production and office space and over 90 Union Sheet Metal Workers in South Bend, IN and Fort Wayne IN. Both locations put the company within 2-3 hours of Chicago, IL, Indianapolis, IN, Detroit and Grand Rapids, MI, Toledo and Columbus OH, and Milwaukee, WI.

Kent B. Wilson, CEO of Alpine 4, had this to say: "The merger of Deluxe Sheet Metal and Morris Sheet Metal will have enormous implications for the Mechanical Contractor industry in the American Midwest. The merger will provide positive impacts for the customers and communities we serve. These impacts will range from; better pricing and enhanced quality control, the latest in construction management technology, and a well-capitalized parent company ready to dominate the Midwest sector. Our competition, however, will have to reckon with these resources, thou I doubt they will be able to compete at our level in the market.

This merger will allow us to leverage complementary strengths between the two companies. Deluxe Sheet Metal can trace its roots back to the 1950's and is known in the industry as the go-to contractor for high-tech thermal management. Its customers range from the University of Notre Dame to GE and many other top-tier companies in the Midwest. The company recently built one of the largest crypto currency mining facilities in the Midwest, requiring precise thermal management. Morris Sheet Metal is the preferred contractor for one of the largest hospital networks in Indiana. During 2020 and the COVID 19 epidemic, Morris was responsible for building hundreds of isolation rooms. The combined company anticipates the benefits of that merger to drop the General & Administrative expenses by almost 7% in the first 12 months after the transaction. We also expect our gross profit margin to increase as our Material Cost of Goods will decrease by 5% due to increased purchasing power. The combined companies should reach revenues in excess of $50M, without major capital investments, within the next 36 months."

Deluxe and Morris have a combined 70 years' experience in the HVAC, Commercial and Industrial sheet metal fabrication industry.

Alpine 4: Four principles at the core of our business are Synergy. Innovation. Drive. Excellence. At Alpine 4, we believe synergistic innovation drives excellence. By anchoring these words to our combined experience and capabilities, we can aggressively pursue opportunities within and across vertical markets. We deliver solutions that not only drive industry standards but also increase value for our shareholders.

Contact: Ian Kantrowitz, VP of Investor Relations
investorrelations@alpine4.com
www.alpine4.com

Forward-Looking Statements: The information disclosed in this press release is made as of the date hereof and reflects Alpine 4 most current assessment of its historical financial performance. Actual financial results filed with the SEC may differ from those contained herein due to timing delays between the date of this release and confirmation of final audit results. These forward-looking statements are not guarantees of future performance and are subject to uncertainties and other factors that could cause actual results to differ materially from those expressed in the forward-looking statements including, without limitation, the risks, uncertainties, including the uncertainties surrounding the current market volatility, and other factors the Company identifies from time to time in its filings with the SEC. Although Alpine 4 believes that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate and, as a result, the forward-looking statements based on those assumptions also could be incorrect. You should not place undue reliance on these forward-looking statements. The forward-looking statements contained in this release are made as of the date hereof, and Alpine 4 disclaims any intention or obligation to update the forward-looking statements for subsequent events.

SOURCE: Alpine 4 Holdings, Inc.

View source version on accesswire.com:
https://www.accesswire.com/633973/Alpine-4-Holdings-Inc-ALPP-Announces-the-Merger-of-Deluxe-Sheet-Metal-Inc-and-Morris-Sheet-Metal-Corporation-to-Become-One-of-the-Largest-Sheet-Metal-Contractors-in-MidwestNorth-Central-US

FAQ

What is the significance of the ALPP merger on the Midwest market?

The merger positions ALPP as a leading sheet metal contractor, enhancing competition and service offerings.

How will the merger of Deluxe and Morris affect ALPP's financial performance?

ALPP anticipates reducing administrative expenses by 7% and increasing gross profit margin due to reduced material costs.

What are the expected revenue projections for the combined entities under ALPP?

The combined companies expect to generate revenues exceeding $50 million within the next three years.

When is the integration of Deluxe and Morris expected to be completed?

The full integration of Deluxe and Morris is expected to be completed by May 2021.