Supply-chain magnate Michael Andlauer, currently a minority owner of the Montreal Canadiens, has officially reached an agreement to buy the Ottawa Senators. Andlauer, 57, also owns the OHL’s Hamilton Bulldogs.
The Andlauer Healthcare Group is a transport company focused on healthcare logistics, with a market cap of USD 2.3 billion.
The Hamilton businessman reportedly partnered with Neil Malhotra, a local investor who has amassed his fortune in the construction industry (Claridge Homes) and has shown interest in buying the Senators in the past.
The NHL Franchise was officially placed on the market following Eugene Melnyk’s passing in late March. According to Bruce Garrioch, Anna and Olivia Melnyk will retain 10% of the franchise.
The Senators’ franchise value is far from being among the highest in the league, but the sale price, which was rumoured to be near USD 1 billion, includes a great investment opportunity in downtown Ottawa. The Sens are the preferred bidder for the development of LeBreton Flats, a conveniently located patch of land, at least relative to where the current Senators arena is located, over 20 kilometres west of downtown Ottawa. LeBreton Flats has long been earmarked as an area where the municipality could develop a multi-use venue, and of course, a new NHL arena.
Montreal Canadiens-Financed Purchase
Andlaueur, a Notre-Dame-de-Grâce native and lifelong Habs fan, was part of the group that purchased the Canadiens, the Gillette Entertainment Group (Evenko), and the Bell Centre in 2009 for USD 575 million.
His original investment was estimated to be USD 28 million and reportedly led to a 20% stake in the organization.
You could argue it was a rather wise investment given how quickly the Canadiens gained value following the sale. According to Forbes, the Canadiens, who are primarily owned by the Molson family, are currently valued at USD 1.85 billion.
Given that Andlauer serves as an alternate governor for the Canadiens, purchasing another NHL team will be considered a conflict of interest, which is likely to lead to the sale of his current shares in the team, though the league has not yet commented on the situation.
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