THUNDER BAY -- Thunder Bay-based North Star Air is being acquired by The North West Company, operator of over 200 retail stores in remote parts of northern Canada and elsewhere.
The Winnipeg-based company will pay $31 million for the airline.
North Star Air provides cargo and passenger services to communities throughout northwestern Ontario. It was established in 1997 and currently operates a fleet of 11 aircraft, using bases in Thunder Bay, Pickle Lake and Red Lake.
North West operates 241 stores in Canada, Alaska, the South Pacific and the Caribbean, under several trading names including Northern, NorthMart and Giant Tiger.
In a joint news release, North Star President and CEO Frank Kelner called North West "a great fit" with the airline.
"North West has a long history of operating in the north and is committed to improving a vital part of the supply chain to better serve its communities and customers. We look forward to working with the new ownership in taking this airline to the next level," Kelner said.
North West President and CEO Edward Kennedy said acquiring North Star will give the company "options to compete and deliver faster, more consistent service" to customers where the need arises.
North West expects to spend an additional $14 million immediately on new aircraft and to expand hub capacity.
The transaction is expected to be completed next month.
