Retail Acquisitions in Canada

Traveland RV acquired Minard's Leisure World, Saskatchewan’s #1 volume RV dealer with locations in Weyburn and Watrous. The business was sold by founders Susan and Gene Minard as part of their retirement, with Performance Brokerage Services serving as the exclusive sell-side advisor. Following the transaction, the dealership will be renamed Traveland's Minard's RV while both locations remain in place.

TriWest Capital Partners completed a majority equity investment in Spence Diamonds Ltd., partnering alongside the company’s existing management team, which will continue to lead the business. Spence Diamonds is a vertically integrated Canadian bridal jewelry retailer headquartered in Vancouver, operating eight showrooms across Alberta, British Columbia, and Ontario.

Birks Group Inc. completed the acquisition of the luxury watch and jewellery business of European Boutique from the Sutkiewicz family for C$9.0 million (subject to customary adjustments). European Boutique, headquartered in Toronto, operates multiple luxury watch and jewellery stores across the Greater Toronto Area and a national e-commerce website, and Birks also entered into a licensing agreement to operate the Canadian Diamonds Direct brand.

Stephan Tetrault acquired Electronics Boutique Canada Inc., operating as GameStop Canada, from GameStop Global Holdings S.A.R.L. Following the transaction, the Canadian video game and pop-culture retailer will be relaunched and rebranded as EB Games Canada, with a nationwide transition planned over the coming months.

Yellowknife Co-op announced it is acquiring Hay River’s Super A Foods, expanding its presence in the Northwest Territories grocery market. The Co-op expects ownership to become official on May 15 and is also seeking member approval to rename as “Lakeshore Co-op” and broaden its trading area to include the South Slave.

Ironbridge Equity Partners, together with Midland Appliance Ltd.’s management, completed the sale of Midland Appliance Ltd. to Canadian Shield Capital and management. The transaction marks the second exit from Ironbridge Equity Partners III, LP and follows a period of growth initiatives including salesforce expansion and new locations in British Columbia.

SNDL Inc. completed a plan of arrangement to acquire all outstanding Nova Cannabis Inc. shares it did not already own, taking out Nova’s minority shareholders and privatizing the company. The consideration was primarily cash at C$1.75 per share with an alternative election for SNDL shares (subject to proration), and Nova’s shares are expected to be delisted from the TSX and OTC Markets. Nova is headquartered in Edmonton, Alberta, and SNDL said the transaction will streamline its Canadian cannabis retail operations by eliminating public company costs.

Fairfax Financial Holdings Limited, through its newly formed wholly owned subsidiary 16133258 Canada Inc., completed a plan of arrangement to acquire all outstanding shares of Sleep Country Canada Holdings Inc. The transaction values Sleep Country shares at C$35.00 per share in cash and will result in the company being delisted from the Toronto Stock Exchange and seeking to cease being a reporting issuer in Canada.

KV Capital’s private equity team acquired UTV Canada Inc., a Canadian distributor and online retailer of aftermarket ATV/UTV parts and accessories. Following the acquisition, UTV Canada will merge with KV Capital Fund II portfolio company Mountain Sports Distribution (MSD) to expand KV Capital’s powersports distribution platform, with UTV Canada’s CEO retaining equity and joining MSD.

Grafton Apparel Ltd. has entered into a definitive sale agreement under which an affiliate of Stern Partners Inc. will acquire the company, subject to customary regulatory approvals. Grafton will continue to operate and grow its Canadian retail and e-commerce banners Tip Top, George Richards Big & Tall, and Mr. Big & Tall. National Bank Financial served as exclusive financial advisor to Grafton, with Davies Ward Phillips & Vineberg as its legal advisor, and Norton Rose Fulbright advising the purchaser.

Lynx Equity Limited, a Toronto-based private equity firm, has acquired Henry's, a Canadian family-owned specialty digital-imaging and consumer electronics retailer with 20 locations across Canada and an e-commerce/B2B presence. Henry's will remain headquartered in the Greater Toronto Area, Ontario, and CEO Gillian Stein and the existing leadership team will stay on, with Andrew Stein and his wife Gaye continuing as advisors.

Westview Co-op announced it will acquire Grasse Lumber Sales to add its first Home and Building Centre location in Didsbury. The acquisition expands Westview Co-op’s retail footprint beyond its existing Home Centres in Drumheller and Hanna, and the company plans to offer continued employment to Grasse Lumber Sales staff. The deal is subject to customary closing conditions and is expected to close in late March, with financial terms not disclosed.

Sycamore Partners completed the acquisition of Lowe's Canadian retail business, which will now operate under the name RONA inc. RONA inc., headquartered in Boucherville, Québec, operates or services approximately 450 home improvement stores across Canada under multiple banners including RONA, Lowe's, Réno-Dépôt and Dick's Lumber.

Golden Opportunities Fund announced a strategic investment in Mega Retail Consolidation LP, completed in syndication with Mega Group Inc. via its wholly owned subsidiary Mega Investment & Development Corporation. The partnership aims to roll up independently owned Canadian retail home goods and furniture stores within Mega Group’s network, providing succession and exit options for member retailers.

Sleep Country Canada Holdings Inc. closed its acquisition of substantially all assets of Silk & Snow Inc., a fast-growing direct-to-consumer sleep and lifestyle products brand. The deal value includes approximately C$24 million paid in cash at closing plus up to an additional C$19.45 million in earnout payments based on growth and profitability targets over the next three years.

On November 4, 2022, Prairie Capital VII, LP and KCM Capital Partners LLC partnered with Royal Distributing’s senior management to recapitalize/acquire Royal Distributing, an Ontario, Canada-based omnichannel distributor and specialty retailer of powersports aftermarket parts, accessories, and performance gear. Royal Distributing will continue to be led by its existing management team, including owners Jordan Smart and Scott Spark, with the investors supporting growth initiatives and potential add-on acquisitions.

High Tide Inc. entered into a definitive agreement to acquire 100% of 2080791 Alberta Ltd., operating as Boreal Cannabis Company, for CAD$2.2 million plus the wholesale value of inventory and cash on hand at closing. The acquisition adds two established retail cannabis stores in Slave Lake and St. Paul, Alberta, expanding High Tide’s bricks-and-mortar footprint in northern Alberta.

High Tide Inc. entered into a definitive agreement to acquire 100% of Livonit Foods Inc., operating as Bud Heaven, for CAD$2.8 million paid in High Tide common shares. Bud Heaven operates two established retail cannabis stores in Bracebridge, Ontario, and the deal is expected to close subject to TSX Venture Exchange and Alcohol and Gaming Commission of Ontario approvals.

High Tide Inc. entered into a definitive agreement to acquire four operating Crossroads Cannabis retail stores in Ontario for CAD$2.5 million, paid in High Tide common shares. The stores are located in Stratford, Woodstock, Hanover, and Markdale, and the transaction is expected to close following customary regulatory approvals.

Pet Valu Holdings Ltd. acquired Les Franchises Chico Inc., Québec's largest pet specialty store franchisor, marking Pet Valu’s entry into the Québec market. Chico will operate as a separate subsidiary under its existing banner with a Montréal-based management team, with founders Pierre Charbonneau and Michel Joly remaining active in the business. The transaction closed February 25, 2022 and was funded with Pet Valu’s cash on hand.

Krystal Growth Partners acquired a majority interest in Whistler Contemporary Gallery (WCG), partnering with existing shareholders Kyle Nordman and Steve Wallace. Founded in 1992 and based in Whistler, British Columbia, WCG operates two resort gallery locations and an online sales strategy, and plans to pursue expansion including acquiring other resort galleries.

High Tide Inc. entered into a definitive agreement to acquire 100% of Bud Room Inc. for CAD$3.6 million, including assignment of the vendors’ shareholder loans. The deal also transfers to High Tide all rights to Bud Room’s customized Fastendr retail kiosk and smart locker technology and Bud Room’s retail cannabis store in Ottawa, Ontario.

Walter Capital Partners is transferring its shareholding in BonLook to FYihealth after a five-year partnership supporting BonLook’s expansion in Canada. Walter Capital will remain a minority shareholder, while FYihealth is positioned to help BonLook expand its network.

MacEwen Petroleum Inc. acquired the business assets of Quickie Convenience Stores Corporation, adding a network of 51 convenience stores (including 22 gas stations) in Eastern Ontario and Gatineau, Quebec. The acquisition nearly doubles MacEwen’s store portfolio and supports continued expansion and modernization investments across its convenience retail footprint.

Lynx Equity Limited acquired Sorrento’s Lighthouse Market, a community grocery, liquor, and tobacco retailer located in Sorrento, British Columbia. Lynx expects to realize synergies with its existing grocery subsidiary, Blind Bay Village Grocer, through combined purchasing, streamlined back-office resources, and shared best practices to strengthen its position in the Shuswap region.

Sundial Growers Inc. entered into an arrangement agreement to acquire all issued and outstanding common shares of Alcanna Inc. via a statutory plan of arrangement. The all-stock transaction values Alcanna at approximately $346 million and is expected to close in December 2021 or the first quarter of 2022, subject to shareholder, court, and regulatory approvals.

An investor group led by Champlain Financial Corporation, alongside Desjardins Capital, Fondaction, and Société Financière Bourgie, has acquired JLD-Laguë, a Canadian John Deere equipment and Peterbilt truck dealership network operating across Quebec and Eastern Ontario. Champlain and certain prior investors reinvested as part of a continuation-fund strategy to support ongoing growth through organic initiatives and acquisitions. Financial terms were not disclosed.

High Tide Inc. completed the acquisition of 102105699 Saskatchewan Ltd., which owns five retail cannabis locations in Regina, Saskatchewan (one operating and four under development), with a potential sixth location to be included if secured. High Tide acquired all outstanding shares from the target’s shareholders for approximately C$2.7 million in consideration, consisting of High Tide common shares and cash. The deal expands High Tide’s retail footprint and strengthens its presence in Saskatchewan.

United Raw Pet Foods Inc., a majority-owned subsidiary of Dane Creek Capital Corp., completed the acquisitions of two pet specialty retailers on Vancouver Island: Lucky Paws Enterprises Inc. and A Pet's Life Ventures Inc. Lucky Paws will continue to be managed by founder Shannon Wetselaar, while A Pet's Life owner Chad McMillan will join United Raw and continue running the store. Financial terms beyond a valuation reference to expected 2021 revenues were not disclosed.

Legault Group, the Quebec-based owner of Mondou stores, acquired 100% of the shares of Ren's Pets, a pet supply retailer headquartered in Guelph, Ontario. The deal marks Legault Group’s first acquisition outside of Quebec and is intended to accelerate growth in Canada through combined retail and online capabilities.

Alimentation Couche-Tard Inc. entered into a definitive agreement to acquire Cape D'Or Holdings Limited, Barrington Terminals Limited, and related holding entities that operate the Wilsons convenience store and fuel network in Atlantic Canada under the Esso, Wilsons Gas Stops and Go! Store brands. The network includes corporate-owned and dealer-operated convenience and fuel locations across the four Atlantic provinces, plus a marine fuel terminal in Halifax, Nova Scotia. Closing is expected in the first half of 2022, subject to regulatory approvals, and some assets may be purchased by a third-party partner following review by the Canadian Competition Bureau.

Kiaro Holdings Corp. entered into a definitive agreement to acquire all issued and outstanding shares of Sculthorp SEO Inc., operating as Cozy Cannabis, which includes a Toronto retail cannabis location and three eCommerce platforms. The $1.35 million transaction will be paid via a mix of Kiaro common shares and cash, and is expected to expand Kiaro into Ontario while adding U.S. and Australian-facing consumption accessory eCommerce channels.

An affiliate of Blackstreet Capital Holdings, LLC (BCH) acquired Red Apple Stores Inc., a Canadian small-town general merchandise retailer operating 142 stores under the Red Apple and The Bargain! Shop banners. BCH will partner with Red Apple management to support continued organic growth and new store openings across Canada.

Kingswood Capital Management completed the acquisition of substantially all assets of MEC through a Companies' Creditors Arrangement Act process. The transaction provides a path forward for MEC, with leadership based in Vancouver under CEO Eric Claus and the continuation of most store operations and staffing.

National appliance retailer Coast Appliances acquired Colony Appliances, a long-standing appliance store in North Vancouver. The deal expands Coast Appliances’ footprint to 17 locations across Canada, and the North Vancouver store will continue operating under the Colony name.

Fraser Valley Building Supplies acquired two Maglio Building Centres retail locations in British Columbia, expanding its footprint in the West Kootenays. The stores were previously owned by Tony Maglio and family, and will be converted to the RONA banner with planned renovations and expanded product offerings.