The North West Company Inc. (TSX: NWC, OTC: NWTUF) announced the acquisition of a 76% interest in Roadtown Wholesale Trading Ltd., a retail and wholesale chain in the British Virgin Islands (BVI).

Roadtown is the largest wholesaler and retailer of food, beverages, and general merchandise in the BVI, where it operates seven retail outlets and one wholesale operation.

The acquisition price is US$32 million and will be paid 90% in cash and 10% in equity. The transaction has been approved by the boards of directors of both companies, as well as the BVI government.

North West estimates that the deal will contribute around US$5 million to annual profits, an amount that is equivalent to about 8% of fiscal-2016 net income. The valuation multiple placed on the transaction seems very reasonable, at around 6 times net profit.

North West specializes in serving smaller markets in remote areas of Canada as well as overseas, where it generates nearly 40% of revenue.

In fact, the C$1.4 billion retailer already has a presence in the Caribbean through its Cost-U-Less chain of warehouse stores, which it acquired back in 2007.

So this latest acquisition should complement North West’s existing operations. The deal is expected to close in February.

Shares of North West currently yield 4.2%, and we estimate the stock’s fair value at C$31, or US$24.

Earnings Season Checklist

Earnings season for the calendar fourth quarter is about to get underway in earnest. While we do not have any particular insights into what the quarter will offer, we’re reasonably comfortable that our Dividend Champions will either maintain or increase their dividends.

The table below lists the date for each company’s earnings release, as well as the expected dividend. Please note that some dates have yet to be confirmed and are, therefore, based on the timing of past reports.