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Warburg Pincus–led group to buy ECN Capital

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ECN Capital announced that it has reached an agreement to be acquired by an investor consortium led by Warburg Pincus in an all-cash transaction valuing the company at roughly 1.9 billion Canadian dollars ($1.35 billion) on an enterprise basis. ECN said holders of its common shares will be paid C$3.10 per share, compared with the stock’s C$3.07 closing price on the Toronto Stock Exchange on Thursday.

The company said its board has unanimously endorsed the agreement, and its largest shareholder, Champion Homes, has signed a support and voting arrangement. Chief executive Steven Hudson said that following the firm’s strategic review in 2023, management has concentrated on enhancing shareholder value, and he added that the proposed transaction offers value certainty and liquidity at an appealing premium.

The acquisition will still require the approval of ECN’s shareholders.

Source: MarketWatch

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