Otter Co-op Acquisition; Latest Cases; Demystifying Business Lending
June 2021 | Issue 4
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Feature:
Otter Co-op Acquisition:
Diversifying Business, Growing Community
For Otter Co-op, growth and impact are the name of the game.
So when they had the opportunity to acquire 19 Liquor Depot, Liquor Barn and Wine Cellar stores across the Lower Mainland and Okanagan, they not only considered the diversification of their business lines, but also how it could grow their community reach and membership benefits. The acquisition was expected to bring an additional $85 million in sales to the Co-op in the first year and would allow Otter to offer employment to the 217 team members currently working at these locations.
While Otter had a strong and long-established lending relationship with their local credit union and Federated Co-operatives Limited (FCL), the lending requirement for this acquisition was outside of the parameters and scope of FCL and their existing lender. Otter was in a position that required them to go to market, evaluate financing packages, and establish a relationship with a new lender all while facilitating a complex, time-sensitive transaction. Read more
Otter Co-op and Ashdown Capital Partner to Support Langley Hospice
Otter Co-op and Ashdown Capital both value giving back to the local communities that support them, deciding to build this focus right into their working agreement.
In May, the companies presented a collaborative gift of $30,000 to the Langley Hospice Society to support the Family Shower Room and Laundry Area of their new Langley Hospice Residence Project. “Otter Co-op is very proud to have collaborated on this with Ashdown Capital, in supporting a fantastic new facility in Langley,” said Otter CEO, Jack Nicholson.
NexMatrix was in a significant growth period, having secured substantial contracts with big-box retailers in the USA. This growth was fuelled in-part by COVID-driven spikes in demand for home improvement goods but mostly due to the long-term vision and steadfast drive of the management team. To increase production accordingly, NexMatrix was funnelling resources toward the purchase of capital equipment for oversees manufacturing, as Canadian lenders hesitated to finance offshore equipment. With much of their profits and liquidity tied up in equipment, the company had little working capital maneuverability for purchasing raw materials. Read more
Little & Lively
Established in 2015, Little & Lively has experienced substantial year-over-year growth, growing 85% from 2019 to 2020 alone. Their on-trend designs and tuned-in marketing approach resonate strongly with their target audience, and the brand has a loyal, expanding customer base. Although Little & Lively has a bricks-and-mortar space, 95% of their sales are e-commerce derived. They recently identified US-based company, Keep Nature Wild, as having a similar market profile and an opportunity for e-commerce growth, and began self-sourcing financing to support its acquisition. Read more
Welcome to the Ashdown team
Please join us in welcoming Ashdown Capital's newest broker.
Steve Wade
Steve joins the Ashdown Vancouver Island team following over a decade of experience in private equity acquiring and operating privately held companies in North America in a wide variety of industries. He has raised debt and equity capital, acquired companies & real estate, hired and mentored executive teams, chaired and sat on boards, driven strategic planning, and also been an operator.
Steve’s perspective on financing has come from years of working with banks as a business owner. He joins Ashdown Capital to be an advocate for other owners and executive teams to help get them the best possible financing solution for their circumstance. Steve has specialized in a variety of industries over the years including but not exclusive to; logistics, building products, agricultural equipment, distribution, niche manufacturing, insurance, real estate, healthcare & technology.
