Public company will be acquired by an affiliate of Sagard Private Equity Canada
A Canadian publicly listed wealth management business is to be taken private in a deal that values its equity at $126.8 million.
Lorne Park Capital Partners has entered into a definitive agreement for its issued and outstanding shares to be acquired by an affiliate of Sagard Private Equity Canada for $2.23 per share in cash. The exception are the shares owned by Lorne Park senior management and certain advisors who enter into equity rollover agreements.
Senior management including CEO Robert Sewell will continue to lead Lorne Park and the firm will continue to be majority owned by management and advisors.
"Sagard Private Equity Canada brings unique mid-market experience and exceptional resources, including an extensive network of business relationships, which will strengthen our ability to serve clients and support the accelerated growth of our team," said Sewell. "With this partnership, Lorne Park is better positioned than ever to deliver exceptional service and innovative solutions to our clients in both Canada and the USA."
The firm was created to bring together boutique investment management and wealth advisory firms in order to deliver robust, cost-effective investment solutions to affluent investors, foundations, estates and trusts.
"This Transaction, with its significant cash premium, represents an exceptional outcome for Lorne Park shareholders and provides certainty to shareholders while Lorne Park pursues its ongoing transformation," said Christopher Dingle, Lorne Park's Chairman and Chair of the Special Committee.
As well as providing cash to shareholders, the involvement of Sagard Private Equity Canada also gives Lorne Park a strategic partner that will help the firm to grow and expand its service to clients.
"Our fund invests in strong middle market Canadian companies, and we have built strong conviction with Lorne Park's vision, strategy, and management team. We are looking forward to partner with its leadership team to continue building a best-in-class wealth management platform and supporting the company's long-term growth plans", said Marie-Claude Boisvert, Partner and Head of Sagard Private Equity Canada.
The take-private will proceed via a plan of arrangement, with a shareholder meeting targeted for August 2025 and closing expected in Q3 2025 (pending customary approvals).
