On December 22, 2022, ABC Technologies Holdings Inc. entered into a definitive agreement to acquire WMG Technologies for U$165 million with potential earn-out payments that may become payable upon the achievement of specified profitability targets over the next 24 months.
To finance the transaction, ABC is expected to drawdown under its credit facilities. On December 5, 2022, ABC amended its existing credit agreement to, among other things, allow for the WMGT acquisition, provide an additional term facility to be used solely in connection with the WMGT acquisition and to be funded at the initial close and to provide additional flexibility.
The transaction is expected to close in Q1 of 2023.
WMGT, a family-owned Canadian business, is a leading supplier to major global automotive original equipment manufacturers across North America and is a leading provider of complex tooling for injection molding applications.
Cassels acted for WMGT.