Lorne Park Capital Partners Inc. Goes Private Through Acquisition by Sagard Private Equity Canada
- Lorne Park Capital Partners Inc. will go private through a CAD 126.8 million acquisition by Sagard Private Equity Canada.
- The acquisition offers shareholders a 41.1% premium, with management continuity assured under CEO Robert Sewell.
- A shareholder vote in August 2025 is required, with 67.2% of voting rights already supporting the transaction.
Lorne Park Capital Partners Inc. Enters Private Ownership Through Strategic Acquisition
On June 5, 2025, Lorne Park Capital Partners Inc. (TSXV: LPC) announces a significant development that will reshape its operational landscape—an agreement to go private through an acquisition by Sagard Private Equity Canada (SPEC). The arrangement entails SPEC purchasing all outstanding shares of Lorne Park for approximately CAD 126.8 million, translating to a cash payout of CAD 2.23 per share. This figure represents a notable premium of 41.1% over the company’s last closing price prior to the announcement, signaling a robust valuation for shareholders. The transaction's structure is designed to maintain the current management team, led by CEO Robert Sewell, thereby ensuring continuity in leadership and strategic direction during this transition.
The strategic rationale behind this acquisition centers on enhancing Lorne Park's growth trajectory and client service capabilities. The Board Chairman, Christopher Dingle, alongside Sewell, underscores the deal's potential to leverage SPEC’s resources and relationships, which are expected to foster long-term growth strategies for the firm. A special meeting for shareholders is slated for August 2025 to vote on this proposal, necessitating a supermajority approval of at least 66⅔% from non-affiliated shareholders. Notably, approximately 67.2% of voting rights have already been pledged in support of the transaction, indicating a strong consensus among stakeholders regarding the proposed shift to private ownership.
As part of the arrangement, Lorne Park retains a non-solicitation clause, allowing it to evaluate superior proposals should they arise, while also imposing a termination fee of CAD 4,875,100 under certain conditions. The completion of the deal is anticipated in the third quarter of 2025, contingent upon shareholder and regulatory approvals. Once finalized, Lorne Park's shares will be delisted from the TSX Venture Exchange, effectively transforming the company into a private entity and ceasing its status as a public reporting company.
In a related note, the Canadian Investment Regulatory Organization (CIRO) had earlier imposed a trading halt on Lorne Park Capital Partners at 8:35 AM ET on the same day to ensure market integrity. The halt was lifted at 10:30 AM ET, indicating a return to normal trading conditions. Such regulatory measures are crucial in providing all market participants with equitable access to information, particularly in the context of significant corporate announcements.
Overall, this acquisition marks a pivotal moment for Lorne Park Capital Partners Inc., steering the company towards a new phase of private ownership while aiming to enhance its service offerings and operational efficiencies.