Affinity Electronics of Canada Inc. was acquired by Drexel Industries

Affinity Electronics of Canada Inc. was acquired by Drexel Industries

Affinity Electronics of Canada Inc. was acquired by Drexel Industries

Transaction Description

This established Canada-wide distributor of mobile phone accessories and electronics is looking for the right acquisition partner. Over its existence the business has grown from a start-up to one of the largest specialty distributor holding a substantial market share in its industry by building strong relationships with world-class brands and suppliers as well as blue chip telecom and retail clients in Canada. The company is able to maintain its competitive advantage through its dedication to innovation and staying on top of consumer trends. Additionally, the business is efficiently staffed and has a strong management team in place. Its supplier relationships have been substantially nurtured and are well established for future relations. With technology advances, demand has been significantly accelerating for mobile and electronic accessories throughout the years. The company has demonstrated consistent revenue year after year. This acquisition is ideal as a synergy for a complementary distribution business and/or a company looking to enter the fast growing Canadian mobile and electronics accessory business. Owner is available to provide 1+ years of transition and handling of the business to the new purchaser.

Transaction Details

Drexel Industries

London, Ontario

Affinity Electronics of Canada Inc.

Barrie, Ontario

Beacon acted as advisors to Affinity Electronics for the sale of the business

Transaction Overview


Toronto, Ontario, December 07, 2017 – Beacon Corporation (“Beacon”) is pleased to announce the completion of the sale of Affinity Electronics of Canada (“Affinity”) to Drexel Industries (“Drexel”). Beacon acted as an exclusive sell side advisor for Affinity and facilitated the process of valuation, confidential marketing, buyer screening, offer and deal term negotiations, and due diligence.

Affinity, an established 12-year old mobile phone accessories distribution business, was acquired by Drexel, a London, Ontario based retail logistics service and fulfillment provider. By leveraging Affinity’s existing customer network, as well as its operational expertise, the acquisition is set to build on the success Drexel has established to date. Affinity’s robust roster of product lines, as well as excellent supplier and retailer relations are set to be an excellent complement to the logistics and fulfillment expertise of Drexel.

Beacon ran a carefully planned sale process, targeting regional financial and strategic acquirers. Beacon’s deal team was involved in each step of the transaction, and facilitated the ultimate outcome for Affinity Electronics. Affinity selected Drexel Industries as its preferred partner and after several rounds of negotiations and due diligence, the deal was completed in November 2017.

Alex Shteriev, Managing Director, commented on the transaction, “We’re delighted to have advised Affinity on this competitive sale process. This is Beacon’s ninth transaction in 2017 and our ability to find exit solution for companies reaffirms Beacon’s position as one of Canada’s leading M&A advisors in the mid-market sector.”

Beacon works with independent family owned businesses throughout Canada and the United States. “Our only focus is offering businesses like Affinity the type of service generally reserved for much larger organizations“, commented Mr. M. Will Fischtein, President of Beacon. “It is a gratifying process to see the owner’s succession plan come to a successful completion” he added.

About Affinity Electronics of Canada
Affinity Electronics of Canada Inc. was incorporated in 2005 and is a wholesale distributor specializing in consumer electronics devices for mobility devices. Representing quality and trusted brands, Affinity represents Bragi, Case Mate, Core Micro, DigiPower, Energizer, Huawei, iBolt.co, Ideal of Sweden, Jabra, Kenu Airframe, Life Proof, Maxwest, OtterBox, Nite Ize, NuPower, Pelican, Samsung, Speck, and Vetta.
www.affinitycanada.com

About Drexel Industries
Drexel Industries is a hybrid wholesale distribution and 3rd party logistics service provider focused on retail distribution and e-commerce order fulfillment. Through a strong core of strategic partners including Telecommunications providers, national retailer partners, and regional players Drexel connects homes to a myriad of products and services throughout Canada.
www.drexel.ca