Business
Exchange Income Corporation Announces Entering into a Binding Purchase Agreement to Acquire Canadian North
Acquisition Expands EIC’s Essential Air Services Business Across Canada’s Arctic ...
About this update from Exchange Income Corporation
[{"type":"text","content":"Exchange Income Corporation Announces Entering into a Binding Purchase Agreement to Acquire Canadian North\n\n\n .bwalignc { text-align: center; list-style-position: inside }\n.bwuline { text-decoration: underline }\n \n\n\n\n\n Acquisition Expands EIC’s Essential Air Services Business Across Canada’s Arctic\n \n\n\n\n\n Exchange Income Corporation (TSX: EIF) (“EIC” or the “Corporation”), a diversified, acquisition-oriented company focused on opportunities in the Aerospace & Aviation and Manufacturing segments, announced today it has signed a binding purchase agreement to acquire Bradley Air Services Limited, operating as Canadian North, for a purchase price of $205 million, subject to adjustments. The purchase price will be funded through the issuance of $10 million of EIC common shares to the vendors and cash in the amount of $195 million from the Corporation’s credit facility. The acquisition of Canadian North provides EIC with a unique opportunity to acquire a Northern airline that operates in adjacent regions and on highly complementary routes to those serviced by EIC.\n \n\n Canadian North provides essential passenger and cargo services to 24 remote Canadian Arctic communities in Nunavut and the Northwest Territories, from its southern gateways in Ottawa and Edmonton. This represents two-thirds of its revenues. Canadian North also provides dedicated charters to resource customers in northern Alberta and British Columbia. These services are delivered with a fleet of 737 jets and ATR turboprops, which are a mix of owned and leased aircraft. Canadian North has significant infrastructure with hangars in Iqaluit, Yellowknife, Ottawa, Edmonton, and Calgary. The acquisition excludes the Montreal to Kuujjuaq route, which will be maintained by one of the vendors, Makivik Corporation (“Makivvik”).\n \n\n The business operations of Canadian North and EIC are highly complementary. Canadian North provides passenger and cargo services in the eastern and western regions in Nunavut, while EIC’s subsidiary Calm Air services the central region. Canadian North is also active in the Northwest Territories, where EIC has no passenger or cargo presence. This investment also provides EIC passenger and cargo jet service and infrastructure in the North to provide opportunitie...