CKP Holdings Ltd on March 31 said it has agreed to acquire Reliance Home Comfort with investment funds managed by Alinda Capital Partners Ltd.
"We believe that CKP will help accelerate the momentum we have generated over the last few years where Reliance experienced strong business results over that time," Reliance President and CEO Sean O'Brien said in a statement.
Pending regulatory approval, a subsidiary of Cheung Kong Property Holdings Ltd. will proceed with the acquisition for C$2.82 billion in cash and assumption of Reliance's debt. CKP plans to on-sell up to 25% of Reliance to CK Infrastructure.
CK Infrastructure Holdings Ltd is the proposed new name for Cheung Kong Infrastructure Holdings Ltd. CKP's largest shareholder is Victor Li's family trust.
Managing Director of CKP and co-Chairman of Husky Energy Inc. Victor Li said in a statement, "We have had very positive experiences nurturing Canadian businesses like Husky Energy and Park'N Fly."
In addition, the Li family trust has significant investments in Canadian Power Holdings Ltd., Wex Pharmaceuticals and Santé Naturelle AG.
On behalf of Alinda, Goldman Sachs & Co. served as its lead financial advisor, CIBC Capital Markets served as its financial co-advisor and Torys LLP served as legal counsel.