EIC acquires Canadian North for CA$205 million

Exchange Income Corporation (EIC), a diversified, acquisition-focused company operating in the aerospace and aviation and manufacturing sectors, has announced the signing of a binding purchase agreement to acquire Bradley Air Services Limited, operating as Canadian North. The acquisition is valued at CA$205 million, subject to adjustments.

The purchase will be financed through the issuance of CA$10 million in EIC common shares to the vendors, with the remaining CA$195 million paid in cash from the Corporation’s credit facility. This acquisition provides EIC with a strategic opportunity to integrate a Northern airline operating in adjacent regions with routes that complement those currently serviced by EIC.

Canadian North plays a vital role in providing passenger and cargo services to 24 remote Arctic communities across Nunavut and the Northwest Territories, operating from southern hubs in Ottawa and Edmonton. These services account for two-thirds of the airline’s revenue. Additionally, Canadian North offers dedicated charter services to resource industry clients in northern Alberta and British Columbia. The airline operates a fleet of Boeing 737 jets and ATR turboprops, comprising both owned and leased aircraft. It also boasts extensive infrastructure, with hangars in Iqaluit, Yellowknife, Ottawa, Edmonton, and Calgary. The acquisition excludes the Montreal to Kuujjuaq route, which will continue to be operated by one of the vendors, Makivik Corporation (Makivvik).

Canadian North and EIC’s operations are highly complementary. While Canadian North serves the eastern and western regions of Nunavut, EIC’s subsidiary, Calm Air, services the central region. Canadian North is also active in the Northwest Territories, where EIC currently has no passenger or cargo presence. This acquisition expands EIC’s capabilities by adding passenger and cargo jet services, along with key infrastructure in the North, benefiting its other aviation businesses.

For the first time, EIC will be able to serve all regions of the far North, reinforcing its commitment to stable and efficient aviation services in these remote areas. As an experienced operator with a strong focus on Northern aviation, EIC aims to provide long-term, reliable service to its customers.

Closing of the transaction is subject to obtaining required regulatory approvals and other customary closing conditions and is expected to occur later this year. (US$1.00 = CA$1.43 at time of publication).