Avante Logixx Inc. is pleased to announce the completion of the previously announced sale of Avante’s 70% ownership interest in City Wide Locksmiths Inc. (“City Wide”), which closed on September 30, 2020.
The majority position of City Wide was originally acquired by Avante on April 1, 2016 under previous management’s strategy of “Own the Home.” Since acquisition, City Wide has contributed to Avante’s top and bottom line, provided access to many tightly controlled product lines, and generated cross selling opportunities between divisions. During the first quarter of fiscal 2021 ending June 30, 2020, City Wide represented 6.3% of Avante’s reported consolidated revenue, or 4.4% if adjusted for only owning 70% of that business.
“We are pleased to complete the divestiture of our majority position of City Wide to members of the Shearer family and wish them great success in the future as they continue to expand their family business,” said Craig Campbell, CEO and Director of Avante. “The investment in City Wide provided a solid dividend return to Avante and a beneficial internal partnership between our divisions. However, we chose to divest our position as City Wide is no longer core to our strategy of building a one-stop shop security solutions provider for both residential and enterprise customers. Proceeds from selling City Wide strengthens our financial position and allows us to focus financial resources and managerial effort on Avante’s core, wholly-owned businesses.”
The sale price for the Company’s 70% interest was $2,341,500, of which $1,800,000 was paid on closing, $450,000 represents an amortizing, interest-bearing vendor take back note payable over not more than five years from closing and $91,500 was received before closing.
No advisory fees were payable or paid by the Company in connection with the transaction.
About Avante Logixx Inc.
Avante Logixx Inc. is a Toronto headquartered provider of security solutions. We acquire, manage, and build industry-leading businesses that provide specialized, mission-critical solutions that address the needs of our customers. Our businesses continuously develop innovative solutions that enable our customers to achieve their objectives. With an experienced team and a proven track record of solid growth, we are taking steps to establish a broad portfolio of security businesses to provide our customers and shareholders with exceptional returns. Please visit our website at www.avantelogixx.com and consider joining our investor email list.
Avante Logixx Inc.