Saltire Capital has acquired SanStone Investments for $70 million, closing a deal that includes full ownership of the heavy- and agricultural-equipment dealer.

The seller received a portion of the purchase price in Saltire common shares, and additional shares may be issued under certain conditions. SanStone operates Wilson Equipment and Tidal Tractor dealerships across Eastern Canada.

To support the transaction, Saltire drew US$50.1 million from a new US$100- million credit facility arranged with Sagard Holdings. The funds also refinanced existing debt and preferred equity. As part of the loan agreement, Saltire issued more than 1.5 million share-purchase warrants to Sagard, exercisable through 2030.

Toronto-headquartered Saltire is also conducting a private placement of up to $5 million in common shares, with closing expected by August 12. Toronto Stock Exchange conditional approval for the transactions has been received, and written shareholder consent was secured in lieu of a vote.

Saltire is a Canadian investment firm focused on long-term capital allocation in private companies with strong fundamentals.

Pictured: Tidal Tractor dealership in Port Williams, N.S.

Photo: Agdealer.com/Sanstone