WesternOne Equity Income Fund has signed a letter of intent to acquire the assets of an engineered scaffold business that specializes in the rental, sales, installation and servicing of scaffold equipment. As is common when the Vancouver, B.C., Canada-based consolidator makes an acquisition, WesternOne didn’t name the acquired company before the deal is finalized, but said the company is based in western Canada, where all of the companies WesternOne has acquired have been based.
Under the terms of the agreement, WesternOne will pay a purchase consideration of CA$5.86 million (about U.S. $5.77 million), plus an additional CA $1 million upon completion of the first 12 months of operation. WesternOne said it will finance the transaction using a combination of existing cash, debt and issuance of fund units to existing shareholders of the acquired business.
The acquisition, expected to close by September, enhances WesternOne’s market share in western Canada, with a strong presence in the market niche of engineered scaffold products and related services.
WesternOne Equity Income Fund is No. 73 on the RER 100.