High River, Alberta – The Western Investment Company of Canada Limited (“WICC” or “Western”) (TSXV:WI) announces it has a new ownership partner at GlassMasters Autoglass (“GlassMasters”). Fort McKay First Nation (“Fort McKay”) has acquired a 39.3% stake in GlassMasters.
The transaction involved the sale of the entire block of shares owned by current partner ATB Private Equity, (“ATB”) with Western selling down its position slightly while maintaining majority ownership of GlassMasters.
The purchase price highlights the 118% increase in value that has been achieved at GlassMasters since the investment by ATB and Western five years ago. The transaction places an equity market value of $17.5 million on GlassMasters, up from $8.0 million in December of 2016.
At closing, Western will receive cash proceeds of $535,174 in exchange for 3% of GlassMasters. The transaction places an implied value of $10.2 million on Western’s remaining 58% ownership, which is $6.1 million more than the original purchase price for these shares, and approximately $2.6 million above the projected carrying value of the investment on Western’s balance sheet at December 31, 2021.
Western CEO Scott Tannas commented:
“We are very pleased with the positive outcomes of this transaction:
– Western, ATB and the management team at GlassMasters worked together to generate significant value in challenging times. This is clearly evidenced by the valuation placed on the company by the experienced operators and the sophisticated investment team at Fort McKay First Nation.
– Like Western, Fort McKay are long-term investors who prefer to own companies where they can contribute to the growth of the business. Their business connections, experience and operating activities in the Alberta Oilsands region will provide significant future growth opportunities for GlassMasters.
– This new partnership adds to the momentum of growing revenue and profits at GlassMasters as they continue to increase market share in existing communities and expand into new ones.
We at Western are proud to partner with the leaders and people of Fort McKay First Nation, authors of a most inspiring success story. We look forward to working together to grow GlassMasters in the years to come.”
Fort McKay First Nation Chief Mel Grandjambe commented:
“Our investment into GlassMasters assists Fort McKay with our goal of generating long-term economic stability for our Nation through strategic investments that economically and geographically diversify our portfolio. We see good value in the business in its current share price with room for significant growth. Fort McKay is pleased to announce two Fort McKay Directors will be joining the GlassMasters Board. We look forward to working with Western to increase GlassMasters value for shareholders while ensuring we continue to provide excellent services to our clients.”
Terry Freeman, Head of Investments for ATB Private Equity added:
“We would like to thank Roger Tulk and the management team at GlassMasters, and our partners at Western Investments for their hard work and collaboration over the last five years. GlassMasters is a textbook example of what ATB Private Equity was established to do, providing capital to transition ownership and allow for growth in Alberta headquartered businesses and make them ready for the next stage of growth and capital. We are very pleased that Fort McKay First Nation has joined the GlassMasters ownership group, and know that they will help bring GlassMasters to another level. We wish Fort McKay, Western and the management team every success going forward.”
The transaction closed earlier today.
About Fort McKay First Nation
Fort McKay First Nation manages a business portfolio of 15 as an income-focused private equity fund. Income is generated from shareholder distributions in the portfolio companies, as well as debt instruments which the Nation provides to targeted investments. The income that the Nation generates from its private equity arm is used to pay for the costs of programs and services such as education and health care in the community of Fort McKay. Only 5-10% of FMFN’s annual operating budget comes from federal or provincial governments.
Fort McKay First Nation has nearly 900 band members of Cree and Dene heritage, with approximately 450 living in the on-reserve section of the community of Fort McKay (located 60 kilometres north of Fort McMurray, on the shores of the Athabasca River). In addition to the Fort McKay community, FMFN has reserves 174A at Gardiner (Moose) Lake and 174B at Namur (Buffalo) Lake, approximately 65 kilometres northwest of Fort McKay. Moose Lake is the traditional home of what is now the Fort McKay First Nation.
A signatory to Treaty 8, Fort McKay First Nation’s mission is to assert Treaty rights, revitalize culture and language, promote education, build economic capacity, and support wellness to create opportunities for our Nation’s healthy and sustainable future.
About The Western Investment Company of Canada
Western is a unique publicly traded, private equity company founded by a group of successful Western Canadian business people, and dedicated to building and maintaining ownership in successful Western Canadian companies, and helping them to grow. The company’s shares are traded on the TSX Venture Exchange under the symbol WI. For more information on the company, please visit its website at www.winv.ca.
The Western Investment Company of Canada Limited
President and Chief Executive Officer
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