• Aimia Inc. (AIM) has signed definitive agreements worth $249.6 million to acquire all the shares of Tufropes Pvt Ltd. and assets of India Nets
  • Aimia stated it will pay the purchase price on a cash-free and debt-free basis, subject to customary adjustments
  • The transaction is expected to close before the end of the first quarter of 2023
  • Upon closing, Aimia will sign an agreement with its partner for this transaction, Paladin Private Equity LLC
  • Paladin will have, among other things, an option to acquire a 19.90 per cent interest in Tufropes from Aimia
  • Aimia Inc. (AIM) is down 10.40 per cent, trading at $3.62 per share as of 2:13 p.m. EST

Aimia (AIM) signed definitive agreements worth $249.6 million to acquire all the issued and outstanding shares of Tufropes Pvt Ltd. along with assets of India Nets.

Aimia, a global investment holding company, will pay the purchase price on a cash-free and debt-free basis, subject to customary adjustments related to net debt and working capital at closing. The transaction is expected to close before the end of the first quarter of 2023.

Tufropes is a global manufacturer of high-performance synthetic fibre ropes and netting solutions for the aquaculture and maritime sectors, as well as diversified industrial end markets. It is expected to achieve annual revenue of approximately $130 million for its fiscal year ending March 31 and EBITDA margins of 18 per cent.

Upon closing, Aimia will sign an agreement with its partner for this transaction, Paladin Private Equity LLC. These agreements would provide governance rights, preferred return for Aimia, certain carry-related rights to the benefit of Paladin, and an option for Paladin to acquire up to 19.90 per cent equity in Tufropes from Aimia within a year of closing. 

Aimia intends to add key senior management as well as sales and marketing positions in Canada and Europe located near key customers and allowing Aimia to use its tax attributes

It is anticipated that the acquisition will be initially financed with Aimia’s cash on hand. Aimia is currently evaluating financing options to raise a certain level of debt at Tufropes within one year of closing.

Aimia Inc. (AIM) is down 10.40 per cent, trading at $3.62 per share as of 2:13 p.m. EST.


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