CALGARY, Dec. 17, 2018 /CNW/ - Equicapita Income Trust and Equicapita Investment Corp. (collectively "Equicapita") are pleased to announce the completion of the acquisition of I-XL Building Products ("I-XL") by a wholly-owned subsidiary of Equicapita (the "Acquisition").
Founded in 1983, I-XL Building Products Ltd. is one of the largest importers and distributors of brick, stone and building products in Canada with roots dating back to 1912. With a focus on premier products from around the world, I-XL offers customers one of the most comprehensive selections of building envelope products available. Over the course of their long history, they have established an unrivaled reputation for customer service, product knowledge and design expertise. I-XL has seven locations across Canada with headquarters in Surrey, British Columbia.
"The acquisition of I-XL highlights further diversification for Equicapita's portfolio and a strengthening of our fund. With a deep history in the Canadian construction landscape, I-XL has developed a strong brand presence across the residential and commercial construction industries" said Equicapita co-founder, Michael Cook. "Distribution businesses have always been of keen interest to Equicapita due to their diverse customer networks and multiple suppliers. I-XL's business exemplifies both characteristics coupled with a unique business model and strategic relationships. We are fortunate to have the opportunity to work with current and continuing President, Karen Morrison, and the high performing executive team of I-XL as we continue to strengthen the business".
I-XL is operated by an experienced management team under the leadership of Karen Morrison. "We are excited by the opportunity to work with Equicapita to transition the business and shape the future of the Company", said Karen. "We will continue to market quality building products with the help of our talented I-XL team and focus on our exceptional relationships with both customers and supply partners".
Consistent with Equicapita's investment mandate of assembling a diversified portfolio of long-established Canadian businesses, I-XL has 35 years of operating history as a distributor and roots dating back to 1912. They serve Canada's broad construction sector and their products can be found on homes and buildings across the country. I-XL's consistent history of strong profitability, along with the continuity of operations by its dedicated staff, represent cornerstones of Equicapita's investment strategy.
The Acquisition closed on December 14, 2018. Following completion of the Acquisition, the business has been operating under the name "I-XL Building Products Inc.". The Acquisition represents Equicapita's ninth portfolio company acquisition and its first in the building products industry.
Equicapita led the deal process internally with key contributions from James Hirsch, Hass Keshavji, Matt Barr and Kerri Furlong. Equicapita retained Norton Rose Fulbright Canada LLP as legal advisors in connection with the Acquisition. I-XL retained MNP Corporate Finance as financial advisors in connection with the Acquisition.
Founded in 2013, Equicapita is a private company buyout fund based in Calgary, Alberta with over $175 million in AUM focused on acquiring private, Canadian businesses with enterprise values ranging from $5 million to $50+ million.
This news release may contain certain information that is forward-looking, and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words "anticipate," "expect," "may," "should"," "project,", "will" or other similar words are used to identify such forward-looking information. Those forward-looking statements herein made reflect Equicapita's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material. Factors which could cause actual results or events to differ materially from current expectations include, among other things: risks associated with the ownership and operation of businesses, including fluctuations in interest rates; employment retention; general economic conditions; supply and demand for businesses; competition for available businesses; changes in legislation and the regulatory environment; and international trade and global political conditions. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release. The forward-looking statements contained in this press release are made as of the date hereof and Equicapita undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.