Kelowna-based Decisive Dividend Corporation has acquired ACR Heat Products Limited, a British manufacturer of hearth stoves, for $8.3 million.
Headquartered in Birmingham, UK, ACR manufactures woodburning, multifuel and gas stoves, as well as electric stoves, outdoor fireplaces and pizza ovens. The company is known throughout the UK for its high-quality, attractively designed products.
Soaring gas prices in the UK have boosted ACR’s sales as consumers look for supplementary heating sources for their homes. The company is well positioned to meet tougher emissions standards with its EcoDesign Ready line of products.
Decisive is a TSXV-listed, acquisition-focused issuer that uses a buy, build and hold approach to deliver value for shareholders. The acquisition of ACR marks Decisive’s second foray into the hearth market following the company’s 2015 acquisition of Blaze King, a U.S.-based wood and gas stove manufacturer.
Decisive paid $7.6 million in cash and $700,000 in common shares to acquire ACR. The cash consideration was funded by a non-brokered private placement of units comprising common shares and warrants for gross proceeds to Decisive of $7.6 million.
MLT Aikins was pleased to act as counsel to Decisive on its acquisition of ACR and its private placement. A team led by Richmond Bayes (M&A and securities) and including Erin Tramley (M&A), Michael Zeismann (tax), Kyle Mirecki (securities) and Maki Kitani (securities) advised Decisive on the transaction, with support from UK counsel.
Our lawyers have wide-ranging experience advising clients throughout Western Canada on mergers and acquisitions and raising capital. Contact us to learn more.