Acasta Enterprises Inc (TSX: AEF) has closed its acquisitions of Toronto consumer staples companies Apollo Health & Beauty Care and JemPak Corp, as well as Irish aircraft leasing company Stellwagen Finance Co. The $1.1 billion round of deals was announced in November. Concurrent with the closing, Acasta completed a private placement offering that raised about $160 million from shareholders, new investors and founders. Acasta, a special purpose acquisition corporation (SPAC), plans to launch as a private equity firm this year.
Acasta Enterprises Inc. Announces Closing of Qualifying Acquisition
TORONTO, Jan. 3, 2017 /CNW/ – Acasta Enterprises Inc. (TSX: AEF) (“Acasta”) announced today the closing of its qualifying acquisition of 100% of three exceptional businesses, alongside Acasta’s launch as a long-term investment and private equity management firm.
Acasta has acquired two leading private label consumer staples businesses, Apollo Health and Beauty Care Partnership and JemPak Corporation, and a best-in-class commercial aviation finance advisory and asset management business, Stellwagen Group.
“As Canada’s first special purpose acquisition company to complete a qualifying acquisition, we are delighted to transition to a fully fledged public company listed on the Toronto Stock Exchange. We look forward to strategically transforming our consumer products and commercial aviation platforms, and building Acasta into a world class investment firm and private equity business,” said Anthony Melman, Chairman and CEO of Acasta.
Following closing, Acasta’s enterprise value is approximately $1.1 billion and Acasta has 92.7 million Class B Shares, including contingent shares, and 20.9 million Warrants outstanding.
Concurrent with closing, Acasta completed its private placement of Class B Shares for aggregate proceeds of approximately $160 million from certain of Acasta’s largest institutional shareholders, new investors, and Acasta’s founders. Each of Acasta’s Class A Restricted Voting Shares not submitted for redemption was automatically converted into a Class B Share. The Class B Shares are expected to commence trading on the TSX on January 6, 2017, concurrent with the delisting of its Class A Restricted Voting Shares.
Goodmans LLP is legal counsel to Acasta. BMO Capital Markets, TD Securities, and Canaccord Genuity Corp. are co-financial advisors and settlement agents in connection with the qualifying acquisition and Stikeman Elliott LLP is their legal counsel.
About Acasta Enterprises Inc.
Acasta is a leading Canadian public company that acquires businesses with exceptional potential for value creation through strategic and transformational initiatives. As a proactive private equity manager, Acasta partners with the senior management teams of its acquired businesses, empowering them to pursue value creating strategies and initiatives.
Acasta has initially acquired three businesses, establishing two investment platforms: private label consumer staples and commercial aviation finance and asset management.
Acasta will continue to pursue additional investment opportunities in its pipeline directly or through a series of multi-billion dollar long-term private equity funds, the first of which management plans to launch in 2017. Additionally, Acasta will raise a series of funds for its commercial aviation finance and asset management business.
Acasta will generate both management fees and carried interest income for Acasta shareholders from its private equity and commercial aviation funds which in time should generate substantial incremental shareholder value.
For further information: Please Contact: Richard Smith, Chief Operating Officer and Chief Financial Officer, Telephone No.: 647-725-6707
Photo courtesy of JemPak Corp