Exchange Income Corporation (EIC), an aerospace, aviation and manufacturing company, has entered into a binding purchase agreement to acquire Bradley Air Services, known as Canadian North, for C$205m ($144m), subject to adjustments.
The acquisition will be financed through C$10m ($7m) of EIC common shares and C$195m ($137m) in cash from EIC’s credit facilities.
This move allows EIC to expand its operations into Northern Canada.
Canadian North is an airline providing passenger and cargo services to 24 remote Arctic communities in Nunavut and the Northwest Territories, with two-thirds of its revenue coming from these operations.
The airline also offers dedicated charters for the resource sector in northern Alberta and British Columbia.
Canadian North’s infrastructure includes hangars in key locations, and its fleet comprises 737 jets and ATR turboprops.
The Montreal to Kuujjuaq route will remain with the vendor, Makivik Corporation, and is not part of the acquisition.
Canadian North president and CEO Shelly De Caria said: “We are more than just a mode of transportation; we are a lifeline connecting families, we facilitate critical commerce and trade for the nation, and we support the unique needs of the North.
“That’s what drives us – it’s why our team gets up every morning. I am from the North; I believe in the potential of the North and I recognise that the North is critical to the future of our country.”
Canadian North’s operations complement EIC’s existing services, with its subsidiary Calm Air covering central Nunavut and Canadian North operating in the eastern and western regions, as well as the Northwest Territories.
This expansion provides EIC with a complete reach across the far north for the first time and adds jet service and infrastructure to its portfolio.
EIC plans to continue Canadian North’s legacy of community investment, including infrastructure and training programmes such as the Atik Mason Indigenous Pilot Pathway.
EIC president Carmele Peter said: “EIC’s success in the North has been no accident. We understand what makes business in the North successful: the customers.
“It is important to understand the uniqueness of the environment and the essential nature of the services we offer to the constituents in these regions.”
The deal is expected to close later this year, pending regulatory approval and standard closing conditions.
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