North West Company Inc., Canada-based retailer with presence in the Caribbean countries, and Roadtown Wholesale Trading Ltd., a privately-held company with retail outlets and wholesale operation working in the British Virgin Islands, entered into definitive purchase agreement for the acquisition of 76% shares of Roadtown Wholesale. The approvals to operate the company under North West majority ownership have been received from the BVI government, and the transaction was approved by the Board of Directors of both parties.
The Canadian company will pay for 76% interest in the BVI retailer approximately US$32 million, and US$5 million in acquisition related costs including stamp duties to the government of the British Virgin Islands.
The acquisition transaction is expected to close in February, 2017, and is to contribute approximately US$5 million of annualized net income to North West, which will pay about 90% of the purchase price in cash, and 10% through issuance of North West common shares. After the acquisition, RTT will continue to operate under the same trade names, Riteway Food Markets and Roadtown Wholesale Trading.
