2737920 Ontario Inc. entered into a definitive arrangement agreement to acquire Strongco Corporation (TSX:SQP) from Oakwest Corporation Limited, ISH Capital Inc., Palmerston Investments Inc., Huddersfield Investments Inc. and others for CAD 42.1 million on January 24, 2020. Under the terms of the deal, Nors will acquire all the outstanding equity of Strongco for CAD 3.15 per share in cash. In case the transaction is terminated, Strongco and Nors, parent of will be liable for a termination fee of CAD 1.75 million. The transaction is subject to customary closing conditions, including approval of 66.67% of the votes cast by Strongco shareholders, voting together as one class, at a special meeting of Strongco, court approval, regulatory and stock exchange approval, dissent rights shall not have been exercised with respect to more than 10% of the issued and outstanding Strongco shares, as well as certain other closing conditions customary for transactions of this nature. The transaction has the unanimous support of the independent special committee of the Strongco Board, as well as Strongco’s full Board. All the Directors and officers of Strongco which received approval on February 11, 2020, as well as certain significant shareholders of Strongco, have entered into voting support agreements with Nors under which they will vote an aggregate of approximately 48% of Strongco’s outstanding shares in favor of the transaction. In connection with the merger, special committee members, Ian Currie and Anne Brace were paid a monthly fee of CAD 3,300 and CAD 3,000, respectively. Strongco's shareholder recommended the approval of the arrangement. The special meeting of shareholders to be held on March 12, 2020. As of March 12, 2020, Strongco shareholders have approved the deal. As of March 16, 2020, the transaction was approved by court. Closing of the transaction is expected to take place before the end of Q1 2020. Richard Scot of Dentons Canada LLP acted as legal counsel and Crosbie & Company Inc. acted as financial advisor to Strongco and fairness opinion provider to the special committee and the Board of Strongco Corporation. David Palumbo of Baker & McKenzie LLP acted as legal counsel and PwC acted as financial advisor to Nors, parent of 2737920 Ontario. Computershare Investor Services Inc. acted as transfer agent to Strongco Corporation in the transaction.