Private Equity
The Caisse de dépôt et placement du Québec's US$1.5 billion investment in Bombardier Inc's rail business this week has "no impact on the company's ratings at this time," Moody's Investors Service said. While the deal is "another shot in the arm for Bombardier", it imposes incremental financial leverage, the rating agency said. On the other hand, combined cash infusions from the Caisse and the Québec government have helped "to mitigate further downward rating pressure."
2 min read · 20 November 2015
Funds managed by Canadian private equity firm Westcap Management have invested in a management buyout that acquired affiliates of DynaVenture Corp. Golden Opportunities Fund and Westcap MBO Investment LP partnered in a $25 million investment in the deal. Saskatoon-based DynaVenture comprises four distinct businesses: machining and fabrication specialist DynaIndustrial; Tackpoint, a maker of anti-friction bearing solutions; crane services provider Dyna Crane Services; and Fluid Clarification, a separation technologies and filtration systems supplier. DynaVenture said the Westcap partnership will help it execute growth plans at home and in global markets.
3 min read · 19 November 2015
Mister Car Wash, a portfolio company of Canadian private equity firm Penfund, has bought Auto Spa Express, a car wash and detail centre located in Aurora, Colorado. No financial terms were released. As a result of this and other recent acquisitions, Mister Car Wash now operates 160 car wash locations in 19 states. Penfund invested US$15.1 million of debt and equity in the Tucson, Arizona-based company in 2014, several months after it was acquired by Leonard Green & Partners. Mister Car Wash was previously owned by ONCAP.
2 min read · 19 November 2015
Canadian private equity firm Lynx Equity has secured $15 million in funding from The Labourers' Pension Fund of Central and Eastern Canada, a multi-employer pension plan with nearly $5 billion in assets. Toronto-based Lynx is focused on buying small and medium-sized businesses from owners who are looking to retire. It targets acquisitions of companies with EBITDA between $500,000 and $2 million and utilizes a buy-and-hold strategy. The firm operates in the United States through a subsidiary called Succession Capital.
2 min read · 19 November 2015
Cable and Wireless Communications PLC (CWC), which earlier in 2015 bought Caribbean telecom provider Columbus International Inc, has agreed to be acquired by Liberty Global PLC. The cash-and-stock deal gives CWC a total equity value of about US$5.3 billion. Liberty Global said the acquisition will create a premier regional broadband and wireless platform with 10 million subscribers. CWC bought Columbus for US$3.025 billion in March, giving an exit to an affiliate of Portland Private Equity, a firm led by Canadian billionaire Michael Lee-Chin. As part of the deal, Portland retained exposure to the acquired business.
10 min read · 18 November 2015
Pt Arctic Fund I LP, the inaugural fund of private equity firm Pt Capital, has raised initial commitments totaling over US$125 million. Limited partners who participated in the fund's first close included Arctic indigenous-owned businesses, the firm said. Founded in 2013, Anchorage, Alaska-based Pt Capital will focus exclusively on deal opportunities in the Arctic. It plans to invest in and grow companies in several Arctic regions, including northern Canada.
2 min read · 18 November 2015
Toronto-based colour cosmetics brand Nudestix Inc has secured a minority capital investment from Alliance Consumer Growth (ACG), a U.S. consumer-focused private equity firm. The investment's value was not disclosed. Nudestix, which has created a streamlined collection of makeup pencils, said the partnership with ACG will help the company to further accelerate global distribution of its products, expand new product innovation, and continue to generate consumer awareness and trial. Founded in 2014 by President and CEO Jenny Frankel and her daughters, Nudestix's products are sold by retailers in Canada, the United States and around the world.
4 min read · 17 November 2015
Ontario Teachers' Pension Plan has agreed to acquire a majority interest in APCO Holdings Inc, a marketer and administrator of vehicle service contracts sold by auto dealers across the United States. No financial terms were disclosed for the deal, which is expected to close in December. U.S. private equity firm Stone Point Capital, which has backed Norcross, Georgia-based APCO since 2007, will remain a shareholder in the business. Jane Rowe, Ontario Teachers' senior vice-president, private capital, said the company is positioned to benefit from favourable industry dynamics and recent organic and acquisition-led growth.
4 min read · 17 November 2015
Resolute Forest Products Inc (NYSE, TSX: RFP) has acquired Atlas Paper Holdings Inc, a Miami, Florida-based manufacturer of tissue products, including recycled and virgin paper grades. The purchase price was US$156 million, including working capital. The seller in the deal was U.S. private equity firm Peak Rock Capital. Atlas, formed out of the combination of Accurate Paper Holdings and Atlas Southeast Papers, was bought by Peak Rock in 2013. Montréal-based Resolute, which provides a range of forest products, said the acquisition gives it "an immediate position in the multi-billion-dollar North American consumer tissue market."
7 min read · 17 November 2015
The JET Group has acquired Sellstrom Manufacturing Co, a maker of personal safety equipment based in Schaumburg, Illinois. No financial terms were disclosed. JET Group, a marketer and distributor of tools and equipment to industrial, construction, safety, welding and automotive markets, said the acquisition adds to its product portfolio. It will also create opportunities for growth in the United States and globally, the company said. Based in Vancouver, JET Group and its affiliates were acquired by Penfund, a Canadian private equity firm, from Diamond Investment Group Ltd in November 2012.
2 min read · 16 November 2015
