DC Advisory advises Basalt Infrastructure Partners on its parallel acquisition and subsequent merger of Go Lime and Simply Green Home Services

Background

• Go Lime is a leading home equipment lessor to residential customers in Ontario, Canada, offering water heaters, HVAC systems, water treatment systems, and other rental solutions under long-term contracts
• The Crown Crest Group of Companies (Simply Green) is a Canadian home equipment lease portfolio, offering a similar suite of products and services to residential customers under long-term contracts
• In November 2023, Simply Green was placed under court-appointed receivership pursuant to Canada’s Companies’ Creditors Arrangement Act (CCAA), which posed an opportunity for the acquisition of the portfolio of home equipment rental assets
• Basalt Infrastructure Partners LLP (Basalt) is a leading transatlantic mid-market infrastructure investment firm with US $8 bn AUM

Process

• DC Advisory was mandated by Basalt to serve as exclusive financial advisor to support the parallel acquisition and subsequent merger of Go Lime and the assets of Simply Green
• Leveraging its experience in buy-side infrastructure transactions, DC Advisory advised on a highly complex transaction that also marked the Infrastructure team’s inaugural deal in Canada
• The transaction encompassed several complex workstreams, including navigation of CCAA insolvency proceedings, valuation, merger strategy, bid tactics, and negotiation of commercial terms

Outcome

• DC Advisory successfully navigated Canadian insolvency proceedings and two separate acquisition processes to support Basalt in acquiring both Go Lime and the assets of Simply Green
• This transaction marks Basalt’s first investment in Canada, creating the fourth-largest rental provider of home services equipment in the country with a combined portfolio of approximately 90,000 leases
• This successful transaction highlights DC Advisory’s expertise in the core+ Infrastructure sector and its capabilities in executing complex transactions