Bennett Jones, Stikeman Elliott, Goodmans, Torys, Osler, McCarthy Tétrault among legal counsel
Deal: Canada partners with Australia to develop Arctic radar missile-detection system
Value: $6 billion
Canada’s strategic partnership with Australia through a $6 billion Arctic radar defense deal and Dollarama’s acquisition of The Reject Shop top this week’s deals roundup. Among the legal counsel are Bennett Jones, Stikeman Elliott, Goodmans, Torys, Osler, and McCarthy Tétrault.
Canadian Prime Minister Mark Carney has announced a significant partnership with Australia to develop an advanced Arctic radar system, aiming to bolster Canada's sovereignty and security in the increasingly contested Arctic region. The agreement involves a $6 billion investment in an "over-the-horizon" radar system, designed to provide continuous threat-tracking over vast areas.
Carney made the announcement in Iqaluit, capital of the Nunavut territory in the Canadian Arctic, on the final leg of his first official trip as prime minister since taking over from Justin Trudeau.
This new radar network will replace the aging Cold War-era North Warning System, which currently relies on radar stations from Alaska to northern Quebec but lacks the capability to respond to modern missile threats.
“The world is changing,” Carney said. “International institutions and norms that have kept Canada secure are now being called into question. And the United States’s priorities, our ally, once closely aligned with our own, are beginning to shift. We cannot and should not look first to others to defend our nation.”
In addition to the radar system, Canada will invest an additional $420 million to enhance its year-round military presence in the Arctic.
Dollarama Inc., a Quebec-based dollar store retail chain, announced the acquisition of The Reject Shop Limited, Australia's largest discount retailer, in a deal valued at approximately $233 million (AU$259 million).
National Bank Financial Inc. is acting as the financial advisor to Dollarama. SBA Law is serving as the legal counsel to The Reject Shop, with UBS Securities Australia as financial advisor.
“Identifying the right opportunity to expand into new geographies and build on our track record as a leading value retailer in Canada and Latin America has been a key objective for the Dollarama team,” said Dollarama president and CEO Neil Rossy. “With this acquisition, we have a unique and compelling opportunity to bring our differentiated value proposition to a new market which presents a clear path for growth through an established platform. We look forward to embarking on this new chapter of Dollarama's international growth journey with the local management team and its more than 5,000 employees across Australia. “
The Reject Shop Board unanimously recommended shareholder approval. Kin Group, the largest shareholder with a 20.8 percent stake, has expressed support for the deal.
The deal is expected to close in the second half of 2025, subject to customary closing conditions.
Boat Rocker Media Inc. (BRMI) entered into definitive agreements with Blue Ant Media Inc. and IDJCo for a reverse takeover and management buyout.
Blue Ant, controlled by Michael MacMillan, will go public through a reverse takeover of BRMI, forming Blue Ant Media Corporation. Blue Ant shareholders will hold 73.5 percent of the resulting issuer, while BRMI shareholders will retain 26.5 percent.
Simultaneously, IDJCo, led by BRMI’s co-founders and CEO, acquired Boat Rocker Studios, including all scripted, unscripted, and kids & family television production, distribution, and brand assets. The resulting issuer will retain Canadian production businesses, generating $118 million in 2024 revenue.
Fairfax Financial Holdings supported the transaction by acquiring BRMI’s minority stake in TIG for US$11.6 million and guaranteeing IDJCo’s promissory note. Fairfax will also provide financial backstops and ensure minimum cash thresholds.
Bennett Jones LLP is serving as legal counsel to Blue Ant, with Cormark Securities as the financial advisor.
Stikeman Elliott LLP is serving as the legal counsel to BRMI. Goodmans LLP is acting as the independent legal counsel and Scotiabank as the independent valuator and financial advisor to the Special Committee.
Osler, Hoskin & Harcourt LLP is serving as legal counsel to IDJCo and Torys LLP is representing Fairfax.
“This is an opportunistic moment for Blue Ant to go public, paving the way for long-term value creation,” said Blue Ant CEO Michael MacMillan. “We are confident that this transaction will unlock significant value for all shareholders. Through the combination of our public listing, a strengthened balance sheet, and significant net cash post-transaction, we believe that we are strategically positioned for profitable global growth, both organically and through M&A.”
The deal is expected to be completed in early June 2025, subject to required approvals.
Purpose Unlimited Inc., a Toronto-based financial services firm specializing in asset management and wealth platforms, agreed to acquire all the issued and outstanding shares of Steadyhand Investment Management Ltd. ("ShIM") and Steadyhand Investment Funds, Inc. ("SIFI") in a strategic move to expand its wealth management capabilities. The transaction value was not disclosed.
Osler, Hoskin & Harcourt LLP is serving as the legal counsel to Purpose. McCarthy Tétrault LLP is serving as the legal counsel to Steadyhand, with Relay Transition Partners as the financial advisor.
Founded in 2006 and based in Vancouver, Steadyhand manages over $1.3 billion in assets across 3,900 investors, focusing on low-fee mutual funds and personalized advice.
“Purpose is focused on improving the financial services experience through technology, innovative investment solutions, and a deep commitment to client service, so that it’s easier for Canadians to reach their financial goals,” said Purpose CEO and founder Som Seif. “Tom Bradley and the Steadyhand team share our passion for exceptional client service and goal-based investing, and we’re excited to bring their team onboard to accelerate our vision to empower more people to take control of their financial futures and build lasting success.”
“Purpose stood out to us because of their commitment to client-focused innovation in wealth management,” said Steadyhand Chair and co-founder Tom Bradley. “Purpose shares our vision of offering Canadian investors a fresh alternative—one that empowers them with cutting-edge technology and personalized service, instead of making trade-offs between high fees or impersonal service that doesn’t reflect their financial needs.”
The deal will increase Purpose’s total assets to over $30 billion and will combine Steadyhand’s personalized client service with Purpose’s advanced technology platform and investment management capabilities.
The deal is expected to close in the second quarter of 2025.
