The board of directors of Tuckamore Capital Management has released a letter to shareholders concerning the proposed acquisition of Tuckamore by private equity firm Birch Hill Equity Partners in partnership with senior managers. The letter said the deal is intended to be a long-term solution that provides the capital resources needed to "de-risk the balance sheet and surface value for shareholders." The $0.75 per share offer gives shareholders "an opportunity to receive cash for their shares, while leaving the purchaser to assume approximately $280 million in debt and capital leases," it said. A number of investors have publicly opposed the deal.
4 min read · 07 July 2014
Thorpe Specialty Services Corp, a portfolio company of U.S. private equity firm CapStreet Group, said Monday that it has acquired the assets of Clayburn Refractories Ltd. No financial terms were disclosed for the transaction. With offices in Abbotsford, British Columbia, and in Edmonton, Calgary and Fort McMurray, Alberta, Clayburn Refractories is a provider of corrosion and refractory services. Update: The deal is the first international acquisition of the Houston, Texas-based Thorpe, which received its initial investment from CapStreet in 2010.
2 min read · 07 July 2014
U.S. agribusiness Archer Daniels Midland has agreed to buy Swiss-German natural ingredient company Wild Flavors for 2.3 billion euros ($3 billion) to enter the flavouring and the health-conscious food sectors.
3 min read · 07 July 2014
TransForce Inc (TSX: TFI) has completed its purchase of Transport America Inc, a provider of truckload carriage and logistics services and a portfolio company of U.S. private equity firm Goldner Hawn Johnson & Morrison. The previously announced deal was valued at around US$310 million, including the assumption of Transport America's debt, which totaled US$150 million. Transforce, a Montréal-based transportation and logistics business, said the acquisition is expected to generate revenue of approximately US$350 million per annum. Goldner Hawn acquired the Eagan, Minnesota-based Transport America in February 2006.
2 min read · 04 July 2014
Lassonde Industries Inc (TSX: LAS.A) has agreed to acquire Apple & Eve LLC for a total cash consideration of US$150 million. The transaction is expected to be completed this month. Lassonde, a Rougemont, Québec-based marketer and manufacturer of fruit juices and drinks, said the acquisition would provide it with Apple & Eve's complete line of juice and drink brands, as well as new growth opportunities in the United States. Apple & Eve, which has its headquarters is Port Washington, New York, is a portfolio company of U.S. private equity firm ClearLight Partners. ClearLight invested in the company in October 2007.
5 min read · 04 July 2014
U.S. private equity firm Mill Road Capital has decided to explore strategic alternatives for portfolio company Vision7 International Inc, formerly known as Cossette Inc. In 2009, Mill Road took Cossette private for $131.5 million. Vision7's sale was not specified as an option; however, Mill Road said, "Any decisions from the strategic review will include the best interests" of the company's clients and employees, as well as "continued leadership from the management team." Based in Québec City, Vision7 is a marketing communications company, specializing in advertising, media planning and buying, public relations and related services. Cossette remains the name of one of its primary agency brands.
2 min read · 04 July 2014
Canadian private equity firm Onex Corp and Canada Pension Plan Investment Board (CPPIB) have completed their sale of industrial conglomerate Gates Corp, the principal remaining business of U.K.-based Tomkins, to Blackstone Group for US$5.4 billion. Onex and CPPIB bought Tomkins in 2010 for about US$5.0 billion. Since then, they have divested eight Tomkins divisions, including Gates, for total proceeds of US$7.9 billion. Onex and CPPIB said that as a result of their original investment in the Tomkins acquisition, they have received total proceeds of about US$4.6 billion, resulting in a multiple of capital invested of about 2.2 times and a return on investment of about 26 percent per annum.
3 min read · 03 July 2014
The New Jersey Division of Investment is planning to hire “several” senior investment professionals for its alternative investments team, Buyouts has learned.
2 min read · 03 July 2014
Driven by brisk activity in the oil, gas and infrastructure sectors, the total value of M&A deals in Canada jumped by 37 percent to US$89.5 billion in the first half of 2014, according to data released by Thomson Reuters, Reuters reported. U.K.-based Barclays led in M&A by deal value, advising on transactions worth US$21.9 billion. Royal Bank of Canada led investment banks in advising on debt and equity issuance.
1 min read · 03 July 2014
It is the industry’s long-standing question: What portion of industry returns come from borrowing, how much from operational improvements, and how much from rising prices for companies? A corollary: How do those portions fluctuate as the economic cycle waxes and wanes?
2 min read · 03 July 2014
