Smith-Midland Signs Land Purchase Agreement to Acquire 33.15 acres for $3.6 million

Rhea-AI Summary

Smith-Midland Corporation (NASDAQ:SMID) announced the acquisition of 33.15 acres adjoining its Virginia manufacturing facility for $3.6 million. The purchase includes three parcels: 1.51 acres for $525,000, 28.28 acres for $2.8 million, and a 3.36-acre developed site previously rented. This expansion supports the company’s long-term growth strategy, enhancing operational capabilities and eliminating rental costs. CEO Ashley Smith expressed optimism about this investment aligning with their vision and delivering value to stakeholders.

Positive

• Strategic acquisition expanding manufacturing capacity.
• Elimination of monthly rental expenses.
• Enhances operational efficiency and product delivery.

Negative

• Potential risks from market demand fluctuations.
• Ongoing concerns related to the coronavirus impact.

MIDLAND, VA / ACCESSWIRE / November 19, 2021 / Smith-Midland Corporation (NASDAQ:SMID) provider of innovative, high-quality proprietary and patented precast concrete products and systems today announced the board approved and finalized land purchase agreements totaling 33.15 acres of land adjoined to the Company's Virginia manufacturing plant located in Fauquier County.

"Smith-Midland is growing, and we seized the opportunity to purchase land adjoined to our flagship manufacturing facility in Virginia which produces many of our innovative products including our patented JJ-Hooks highway barriers, and our proprietary SlenderWall cladding system. Two of the parcels of land recently became available presenting a prudent investment opportunity that supports our long-term expansion. The third parcel of land comprised of approximately 3.36 acres is developed, and in use by the Company today. Historically, we have rented the acreage from Rodney Smith for use as a storage area. This purchase will eliminate those monthly expenses. The 3.36 acre purchase agreement with my father, Rodney Smith, underwent a third-party appraisal to ensure a fair and independent valuation assessment. We are very optimistic as we execute against our long-term vision, and continue to drive value for our stakeholders," Chief Executive Officer, Ashley Smith concluded.

The Virginia manufacturing facility which included 45 acres prior to these land purchases serves several of Smith-Midland's strongest markets reaching from New York to North Carolina, and south to West Virginia. The purchase agreements include three parcels of land, the first is comprised of 1.51 acres, the second includes 28.28 acres, and the third is a 3.36 acre parcel of land which brings the total purchase to 33.15 acres. The purchase prices are $525,000, $2.8 million, and $295,000 respectively bringing the final cost to $3.6 million.

About Smith-Midland
Smith-Midland invents, develops, manufactures, licenses, rents, and sells a broad array of precast concrete products and systems for use primarily in the construction, transportation, and utilities industries. Management and the board own approximately 17.5 percent of SMID stock, aligning with shareholder values.

Forward-Looking Statements
This announcement contains forward-looking statements, which involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed in the forward-looking statements. Factors which might cause such a difference include, but are not limited to, the risk that the coronavirus outbreak may adversely affect future operations, product demand, the impact of competitive products and pricing, capacity and supply constraints or difficulties, general business and economic conditions, our debt exposure, the effect of the Company's accounting policies and other risks detailed in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.

Company Contact:
AJ Krick, CFO
540-439-3266
investors@smithmidland.com

Investor Relations:
Steven Hooser or Deidra Roy
Three Part Advisors, LLC
214-872-2710

SOURCE: Smith-Midland Corporation

View source version on accesswire.com:
https://www.accesswire.com/673707/Smith-Midland-Signs-Land-Purchase-Agreement-to-Acquire-3315-acres-for-36-million

FAQ

What did Smith-Midland Corporation announce on November 19, 2021?

Smith-Midland Corporation announced the acquisition of 33.15 acres of land for $3.6 million, adjacent to its Virginia manufacturing plant.

Why is the land acquisition important for Smith-Midland (SMID)?

The land acquisition supports Smith-Midland's long-term growth strategy by expanding manufacturing capacity and eliminating rental costs.

What are the financial details of the land purchase by SMID?

The total purchase price for the three parcels of land is $3.6 million, comprising $525,000 for 1.51 acres, $2.8 million for 28.28 acres, and $295,000 for 3.36 acres.

How does the acquisition affect Smith-Midland's stakeholders?

The acquisition is expected to drive long-term value for stakeholders by enhancing operational efficiency and reducing expenses.

What risks did Smith-Midland mention in the press release?

Risks include potential market demand fluctuations and the impact of the coronavirus outbreak on operations.