08:24 AM EDT, 06/06/2024 (MT Newswires) -- ATCO (ACO-X.TO) on Thursday said its Structures division acquired NRB Ltd for $40 million, bringing the company additional modular-building manufacturing capacity.

NRB, a unit of Dexterra Group ( HZNOF ) , brings four Canadian manufacturing facilities, including three in markets ATCO currently does not serve, and 400 employees. The acquisition is part of ATCO's plan to increase its offerings in the modular-home market amid rising housing costs and tight rental supply in most Canadian markets.

"ATCO is excited about the opportunity to expand NRB's modular business capabilities, particularly in the manufacturing of multi-family and affordable housing modular construction solutions," ATCO Structures president Adam Beattie said in a release.

The acquisition is expected to close by the end of July.

ATCO's Class X shares closed up $0.40 to $40.40 on Wednesday on the Toronto Stock Exchange.