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Newlook Capital acquires stake in Direct Elevator Services

Canadian private equity firm Newlook Capital has made an investment in Direct Elevator Services Ltd, a Toronto-based provider of elevator maintenance and modernization services. No financial terms were disclosed. The investment, made via Newlook Capital Industrial Services LP, is strategic and will help expand the fund’s industrial services portfolio, the firm said. Newlook also said it secured additional fund commitments from Industrial Alliance Securities Inc, a securities brokerage firm, and Raintree Financial Solutions, a private capital markets dealer.

PRESS RELEASE

Newlook Industrial Services LP announces first quarter distribution and acquisition of shares in Direct Elevator Acquisition Company Ltd.

Burlington ON January 18, 2017 / – Newlook Capital Industrial Services LP (“Newlook LP”) is pleased to announce its December quarterly distribution to holders of A, B, B2, C, D, and E units (each a “Unit”) of the Newlook Capital Industrial Services Fund (the “Fund”), as of December 31,2016, (the “Distribution”). The Distribution represents an 8.0% return to the Unitholders of the Fund on an annualized basis.

The Fund owns a growing portfolio of companies providing code-compliance services, that are operating in Canada and which generate positive cash flow (the “Portfolio”). Since the initial closing of the offering of Units (the “Newlook LP Offering”), closing the first tranche of the facility in October 2016, the Portfolio produced positive cash flow sufficient to both meet the financial performace provided to unitholders and fuel growth of the operating companies. Elroy Gust, President & CEO of Newlook Capital, says “We are quite pleased with how the Portfolio is performing to date. In addition to continued positive cash flows, the companies are also maintaining solid growth.”

On December 9 and 30, 2016, Newlook LP completed further closings of the ongoing offering of Units and a further closing is anticipated on February 3, 2017. A closing of the ongoing offering of trust units by Newlook Capital Industrial Services Trust (“Newlook Trust”) (the “Newlook Trust Offering”) is anticipated to be completed concurrently. Industrial Alliance Securities Inc. is the lead IIROC agent for the Newlook LP Offering and Raintree Financial Solutions is the lead Exempt Market Dealer for the Newlook Trust Offering.

Newlook LP is also pleased to announce its substantial investment in Direct Elevator Services Ltd (“Direct Elevator”) through its investment in Direct Elevator Acquisition Company Ltd. (“DEAC”). Direct Elevator is a leading provider of elevator maintenance and modernization services, with 95 highly trained employees and operations that offer service throughout the entire Greater Toronto Area from offices in Scarborough and Etobicoke. The indirect acquisition of Direct Elevator through DEAC provides a platform for Newlook LP to expand its industrial services portfolio. Current management of Direct Elevator will stay in place and will have a vested interest in the business going forward.

“We are pleased to announce this important platform investment by Newlook LP,” stated Elroy Gust, President & CEO of Newlook Capital Inc. “Direct Elevator is a highly strategic acquisition for Newlook LP, its ability to generate ongoing and increasing EBITDA from a wide range of customers really resonates with us as investors. Direct Elevator fits the mandate of the Newlook LP perfectly, namely, technical service revenue of a recurring nature, where the service provided gives code compliance assurance. This is exactly the type of businesses we are looking for.” Abbas Osman, CIO of Newlook Capital Inc., adds, “Our pipeline of opportunity for additional acquisitions continues to be robust and we look forward to continuing to deploy capital in a timely manner.”

With these key initial acquisitions completed, Newlook LP now has approximately $13.5 million under management and commitments for additional capital from its strategic institutional investors that will enable additional synergistic. Newlook LP completed an acquisition of substantially all of the assets of Multigas Detection and Instrumentation Services Group Inc. (“MultiGas”) in November 2016. MultiGas is a leading provider of gas detection equipment, gas detection calibration and technical design services, with 23 highly trained skilled employees and operations across western Canada. It is headquartered in Leduc AB. Like Direct Elevator, Multigas is a technical services business with reliable recurring revenues, with solid growth trajectory.

ABOUT NEWLOOK CAPITAL INC.
Newlook Capital Inc. operates as a private equity firm and merchant banker, investing throughout Canada and the U.S., with a preference for companies that exhibit a solid tangible assets base. Newlook Capital Inc. is focused on and current holdings include multifamily real estate and services in the U.S., industrial services in Canada and the U.S., and QSR in Canada. Newlook Capital Inc. took the initiative to establish Newlook LP and indirectly controls its general partner.
www.newlookcapital.com

ABOUT DIRECT ELEVATOR
Direct Elevator is a leading elevator maintenance and modernization provider in the Greater Toronto Area. The company offers unparalleled service and commitment to quality. Direct Elevator offers modernization consultation, parts sales, installation and commissioning, and service.
www.directelevator.com

ABOUT MULTIGAS
MultiGas Detection is the leading Gas Detection System sales and service provider in Western Canada. The company offers unparalleled equipment diversity and commitment to quality. MultiGas offers consultation on system design, sales, installation, commissioning, and calibrations and service. In addition, they have a complimentary division offering industry-leading sales and service expertise in the Variable Frequency Drive and Soft Start industry.
www.multigasinc.com

For further information: Investor, analyst and media: Newlook Capital Inc., Laura Livingstone, Investor Relations, 905.331.3697 x 201, laura@newlookcapital.com

Photo courtesy of Reuters/Mal Langsdon