Lorne Park Capital Partners set to go private in $126.8M deal

Investing.com -- Lorne Park Capital Partners (WA:CPAP) Inc . (TSXV:LPC), a wealth management firm, announced today that it is set to go private in a transaction that values the company’s equity at approximately $126.8 million. The deal involves an affiliate of Sagard Private Equity Canada (SPEC) acquiring all the issued and outstanding shares of the company.

Each shareholder is set to receive $2.23 per share in cash, a premium of 41.1% over the closing price on June 4, 2025, and 52.1% over the 20-day volume-weighted average trading price. This excludes shares held by senior management and certain advisors who enter into equity rollover agreements. The transaction will provide immediate liquidity to shareholders and establish a strategic partner for Lorne Park to execute its long-term growth strategy.

The company’s current Chief Executive Officer, Robert Sewell, will continue to lead the company with the backing of the existing management team. The company’s vision, strategy, and commitment to client and advisor experience will remain unchanged after the transaction.

The company’s Board of Directors unanimously approved the transaction. The board, with interested directors abstaining, is recommending that Lorne Park shareholders vote in favor of the transaction. This follows a unanimous recommendation from a special committee of the board, comprised solely of independent directors.

Christopher Dingle, Lorne Park’s Chairman and Chair of the Special Committee, stated that the transaction would provide certainty to shareholders while Lorne Park pursues its ongoing transformation. Robert Sewell, Lorne Park’s Chief Executive Officer, noted that SPEC’s mid-market experience and extensive network of business relationships would strengthen the company’s ability to serve clients and support the accelerated growth of their team.

The transaction will be implemented under the Business Corporations Act (Ontario) and will require shareholder approval at a special meeting of Lorne Park shareholders. The company expects to hold the special meeting in August 2025 and to mail the management information circular for the meeting in July 2025. The transaction is also subject to court approval, regulatory clearances, and other closing conditions. The transaction is expected to close in the third quarter of 2025.

Directors and executive officers of Lorne Park, along with Rollover Shareholders holding approximately 67.2% of voting rights attached to the outstanding Shares, have agreed to vote their shares in favor of the transaction. Following the completion of the transaction, the shares are expected to be delisted from the TSXV and Lorne Park will cease to be a reporting issuer in all applicable Canadian jurisdictions.

The transaction was approved unanimously by the Board and the Special Committee.

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