Exchange Income Corporation acquires Canadian North

Torys acted as counsel to Exchange Income Corporation with a team that included Peter Danner, Alanah Wiberg, Matt Bean, Katelyn Deyholos and Jack Kuzyk (corporate/M&A), Omar Wakil, Ian Li and Eric Patenaude (competition/regulatory), Amy Nugent and Megan Funke (lending), Tom Stevenson and Parker Baglole (pensions and employment), Andrew Bedford and David Meier (real estate), Tyson Dyck and Claire Seaborn (environmental), Edward Fan (IP) and Steve Marshall (tax).

On July 2, 2025, Exchange Income Corporation (“EIC”) announced the closing of the previously announced binding purchase agreement dated, February 24, 2025, to acquire Bradley Air Services Limited, operating as Canadian North, for a purchase price of C$205 million.

The acquisition provides EIC with a unique opportunity to acquire a Northern airline that operates in adjacent regions and on highly complementary routes to those serviced by EIC. Canadian North provides passenger and cargo services in the eastern and western regions in Nunavut, while EIC’s subsidiary Calm Air services the central region. Canadian North is also active in the Northwest Territories, where EIC has no passenger or cargo presence. This investment also provides EIC passenger and cargo jet service and infrastructure in the North to provide opportunities for its other aviation companies.

The purchase price was funded through the issuance of C$10 million of EIC common shares to the vendors and cash in the amount of C$195 million from EIC’s credit facility.

Further information can be found on Business Wire’s website.

Canadian North is an airline that connects people and delivers essential goods throughout Northern communities in Canada. With a versatile fleet, it connects 24 communities within Nunavut and the Northwest Territories, as well as Southern hubs in Ottawa and Edmonton. Canadian North is also the premier provider of air charter services for large resource sector clients requiring dependable, efficient and economical fly-in/fly-out charter services.

Exchange Income Corporation is a diversified acquisition-oriented company focused on opportunities in the Aerospace & Aviation and Manufacturing segments. It uses a disciplined acquisition strategy to identify already profitable, well-established companies that have strong management teams, generate steady cash flow, operate in niche markets and have opportunities for organic growth.