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.

Cautionary Note Regarding Forward-Looking Statements

This news release may contain forward‐looking statements (within the meaning of applicable securities laws) which reflect Acasta's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on Acasta's expectations, estimates, forecasts and projections and include, without limitation, statements regarding Acasta's intention to launch as a long-term investment and private equity management firm, Acasta's pursuit of additional investment opportunities, including the launch of a series of multi-billion dollar long-term private equity funds, that Acasta will raise a series of funds for its commercial aviation management business and that Acasta will generate both management fees and carried interest income for its shareholders, which in time will generate substantial incremental shareholder value.

The forward-looking statements in this news release are based on certain assumptions, including without limitation, that Acasta's future objectives and strategies to achieve those objectives will not change, including, without limitation, its plans to pursue additional investment opportunities and to raise its first private equity fund. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the risk that Acasta may not succeed in raising its private equity funds. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, Acasta assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.


SOURCE Acasta Enterprises Inc.

For further information: Please Contact: Richard Smith, Chief Operating Officer and Chief Financial Officer, Telephone No.: 647-725-6707


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