Locks & Door Hardware
Avante Logixx announces divestiture of Citewide Locksmiths Inc.
The transaction is expected to close on or before Sept. 30.
Avante Logixx Inc. announced that it has entered into a binding agreement with the minority shareholders of CityWide Locksmiths Inc. to sell Avante’s 70 per cent interest in Citywide. The transaction is expected to close on or before Sept. 30.
The majority position of Citywide was originally acquired by Avante on Apr. 1, 2016 under previous management’s strategy of “Own the Home.” Since acquisition, Citywide 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 fourth quarter of fiscal 2020, Citywide represented 7.3 per cent of Avante’s consolidated revenue.
“We are pleased to announce the divestiture of our majority position of Citywide to members of the Shearer family and wish them great success as they regain control of their family business,” said Craig Campbell, CEO and director of Avante, in a prepared statement. “We enjoyed being partners with the Shearer family and look forward to working with them in the future through referrals and mutual projects that benefit both companies. We chose to divest our interest in Citywide because it is no longer core to our strategy of building a one-stop shop security solutions provider for both residential and enterprise customers. By divesting Citywide, management will have greater focus on executing our stated strategy and the sale proceeds will provide additional capital for Avante’s general corporate purposes.”
The sale price for the Company’s 70 per cent interest will be approximately $2.3 million, of which $1.8 million will be paid on closing, $450,000 represents an interest-bearing vendor take back note payable over five years and $91,500 has already been received.