Exchange Income Corp. Acquires Canadian North Airline in $205 Million Deal

Winnipeg-based Exchange Income Corporation (EIC) has agreed to acquire Canadian North, a prominent northern airline, for $205 million. This strategic move aims to enhance EIC’s regional aviation portfolio by integrating Canadian North’s extensive Arctic operations. The acquisition is pending regulatory approvals, with expectations to finalize within the year. citeturn0search0

Canadian North operates passenger and cargo services to 24 Arctic communities across Nunavut and the Northwest Territories, utilizing a fleet that includes Boeing 737s and ATR turboprops. The airline also provides charter flights supporting natural resource industries in Alberta and British Columbia. citeturn0search5

EIC’s CEO, Mike Pyle, highlighted the complementary nature of the acquisition, stating that Canadian North’s routes align seamlessly with EIC’s existing northern operations, which include carriers like Calm Air and Keewatin Air. He emphasized EIC’s longstanding commitment to northern aviation and expressed confidence in leveraging the company’s expertise to bolster Canadian North’s services. citeturn0search0

The transaction will be financed through a combination of $10 million in EIC common shares and $195 million in cash from EIC’s credit facilities. Notably, the Montreal to Kuujjuaq route will remain under the purview of Makivik Corporation and is excluded from the acquisition. citeturn0search4

Pending approval from the Competition Bureau and Transport Canada, the acquisition is anticipated to close later this year. EIC’s expansion into northern aviation underscores its dedication to providing essential air services to remote Canadian communities. citeturn0search0

Source: Swifteradio.com