Acasta Enterprises to sell JemPak for $118M

Acasta Enterprises Inc. (TSX: AEF) has agreed to sell JemPak Corporation to Henkel Canada Corporation, a wholly-owned subsidiary of Henkel AG & Co. KGaA (ETR: HEN3), for CDN $118 million on a cash free and debt free basis.

Concord, Ontario based JemPak is focused on the US and the Canadian laundry and home care retailer brands business and offers products in attractive and growing categories such as automatic dishwashing, laundry caps and fabric finishers. It operates two manufacturing sites.

In fiscal 2017, JemPak reported sales of approximately CDN $90 million and it employs about 140 people.

Acasta, formerly a special purpose acquisition corporation (SPAC), acquired all of the issued and outstanding equity interests of JemPak, as one of four qualifying acquisitions (Stellwagen, JemPak, Apollo Health and Beauty Care) in January 2017, for CDN $134.36 million, consisting of CDN $66.86 million in cash and CDN $67.50 million in Acasta shares.

On March 27, 2018, Acasta sold Stellwagen to an affiliate of Martello, the previous owner of Stellwagen, in exchange for the cancellation of 26 million common shares of Acasta beneficially owned by Martello and others and the payment to Acasta of US $35 million. Acasta paid CDN $324.83 million for Stellwagen consisting of CDN $96.55 million cash, and 22.83 million shares.

photo credit: Google Map

News Release

Acasta Enters into Definitive Agreement to Sell JemPak Corporation

TORONTO, May 10, 2018 – 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.

For further information
Acasta Enterprises Inc.
Ian Kidson, 1-647-725-6707
Interim Chief Executive Officer
www.acastaenterprises.com


Ted Liu
Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, TechnologyMetals.ca, GoldSilverMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of sophisticated and advanced CPE Media Private Capital Dealbase. Ted is President of CPE Media Inc., Canada's independent, trusted and unbiased data provider tracking Canadian VC/PE, private capital industry and public market.
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