North American Construction Group Ltd. (NYSE:NOA) entered into a definitive agreement to acquire a 49% stake in Nuna Logistics Limited from a group of private shareholders for CAD 42.5 million on September 20, 2018. The consideration will be paid in cash and is subject to customary closing adjustments based on shareholders’ equity. The transaction will be fully financed using North American Construction’s existing credit facility. The purchase price implies a transaction multiple of 1.0 x tangible book value, the purchase price to EBITDA is about 3x and the enterprise value to EBITDA multiple is 2.7x. The transaction is expected to close in the early fourth quarter of 2018. Nuna’s asset light business model is highly accretive to EBITDA and EPS of buyer. The transaction is also expected to lead to Double-digit free cash flow accretion for North American Construction shareholders. National Bank Financial Inc. acted as financial advisor to using North American Construction. Raymond James acted as financial advisor to the vendors. Borden Ladner Gervais LLP acted as legal advisor to North American Construction.