Acasta Enterprises Inc (TSX: AEF) has agreed to sell JemPak Corp, a Concord, Ontario-based maker and distributor of store-brand laundry and dish-cleaning products. Acasta agreed to sell JemPak to the Canadian affiliate of Henkel AG & Co KGaA, a German chemical and consumer goods company, for $118 million on a cash-free and debt-free basis. Acasta acquired the company last year. At the time of the deal’s announcement in late 2016, the Canadian special purpose acquisition corporation (SPAC) said it would buy JemPak for about $135 million in cash and stock. The sale’s proceeds will be used to pay down Acasta’s debt.
Acasta Enters into Definitive Agreement to Sell JemPak Corporation
May 10, 2018
TORONTO–(BUSINESS WIRE)–Acasta Enterprises Inc. (TSX: AEF) (“Acasta” or the “Company”) announced today that it has entered into a definitive agreement with Henkel Canada Corporation, a wholly-owned subsidiary of Henkel AG & Co. KGaA, (“Henkel”) to sell JemPak Corporation (“JemPak”) at a purchase price of $118 million on a cash free and debt free basis, subject to customary working capital adjustments and indemnities.
“This transaction further improves the capital structure of Acasta as we look to significantly pay down our aggregate indebtedness,” commented Ian Kidson, Interim Chief Executive Officer of the Company.
The parties expect the transaction to close on or about May 31, 2018. The proceeds from the sale of JemPak will be used to further pay down indebtedness.
Canaccord Genuity Corp. served as financial advisor and Goodmans LLP acted as legal counsel to Acasta, respectively.
forward looking statements in this new release.
Acasta Enterprises Inc.
Ian Kidson, 1-647-725-6707
Interim Chief Executive Officer
Photo courtesy of JemPak Corp