The investment pace in Canada’s private equity market continued to slow in the first half of 2018, according to a report by the Canadian Venture Capital and Private Equity Association (CVCA). A total of $7.6 billion was invested in 146 PE deals in the second quarter, bringing the year-to-date total to $14.5 billion over 288 deals. Two mega-deals took 69 percent of dollars invested at the end of June. They were the $5.1 billion recapitalization of GFL Environmental Inc and the $4.9 billion acquisition of Husky IMS International Ltd. More than one-fifth of PE deals in the first half were closed in the industrial and manufacturing sector, while the information technology sector accounted for 16 percent.
4 min read · 23 August 2018
Canada’s venture capital market continued its five-year upward trajectory in the first half of 2018, according to a report by the Canadian Venture Capital and Private Equity Association (CVCA). Nearly $1 billion was invested by VC funds in 166 financings in the second quarter, bringing the year-to-date total to $1.7 billion, up 7 percent from the first half of 2017. Q2 2018 is the third time since early last year when dollars invested topped $1 billion. The average deal size in this period was $6 million, 13 percent higher than the average between 2013 and 2017. Information technology companies accounted for 64 percent of VC invested at the end of June, while life sciences and clean technology companies each took 12 percent.
5 min read · 23 August 2018
Montréal-born hospitality brand Sonder has raised US$85 million in a Series C financing, according to a report by Forbes. The round, which brings the San Francisco-based company's total funding to more than US$135 million, was led by Greenoaks Capital, the report said. Other investors included Greylock Partners, HarbourVest Partners, Spark Capital and Structure Capital, according to a report by Skift. In 2016, Sonder closed a US$10 million Series A round led by Spark and joined by Thayer Ventures, Real Ventures and BDC Capital. Founded in 2012, Sonder provides “hometel” rental services to travellers. It leases or manages 2,200 units in 11 cities.
1 min read · 23 August 2018
Canadian private equity firm TriWest Capital Partners has invested in PRT Growing Services Ltd, a Victoria, British Columbia-based provider of containerized growing processes for a range of forestry seedling species. Terms weren't disclosed for the deal, which saw TriWest partner with PRT senior management led by CEO Robert Miller. Founded in 1988, PRT operates 18 growing and cold storage facilities serving reforestation needs in Canada and the United States. Its nurseries have a capacity to produce in more than 215 million seedlings per year. TriWest Managing Director Ryan Giles said PRT is positioned to execute on "its backlog of organic and acquisitive growth opportunities across North America."
3 min read · 23 August 2018
Enterra Feed Corp, a maker of insect-based feed ingredients, has closed a new round of financing. Terms weren't disclosed. Cibus Fund, the food technology fund of Hong Kong's ADM Capital, led the deal. It was joined by Germany's PHW Group and a Canadian family-owned investment firm. All three are new investors. Existing investors Avrio Capital and Wheatsheaf Group also participated. Enterra said the funds raised will be used to build three new facilities for $30 million each. The plants, which will increase the company's production of nutrition-rich insects for animal feed, will be located in Alberta, British Columbia and the Midwestern United States. Langley, British Columbia's Enterra was founded in 2007 and is led by CEO Geoff Gyles.
5 min read · 23 August 2018
Unisync Corp has agreed to acquire the issued and outstanding capital stock of Utility Garments Inc, a Montréal-based designer and maker of corporate uniforms, for $19.5 million in cash and about 1.27 million shares of Unisync. The sellers are Canadian private equity firm BDG & Partners and two minority shareholders. Utility Garments, which has operated in the Québec market since 1935, was acquired by BDG last year. Unisync, a Vancouver-based supplier of corporate apparel and protective garments, said the acquisition will expand its geographic reach into Québec. The deal will see BDG CEO and Managing Partner Christian Turgeon join Unisync's board.
6 min read · 23 August 2018
The private equity group of Brookfield Asset Management and Macquarie Capital have agreed to sell Quadrant Energy, a Perth, Australia-based oil and gas company, for US$2.15 billion. The buyer is Australian oil and gas company Santos Ltd. The deal includes a contingent payment linked to Quadrant's exploration interests, such as the Dorado-1 oil discovery in Western Australia. The sale is expected to close in the fourth quarter. Quadrant was established in 2015 as a result of the US$2.1 billion acquisition of Apache Corp’s Australian energy operations by Brookfield and Macquarie. Brookfield currently holds a 48.3 percent stake in the business, while Macquarie holds 21.8 percent.
3 min read · 23 August 2018
U.S. private equity firm New Water Capital has acquired Trillium Health Care Products Inc, a Brockville, Ontario-based contract maker of prescription and over-the-counter products for pharmaceutical companies. No financial terms were disclosed. The deal will see Trillium's executive team continue to manage the company. Going forward, Jay Webb, previously Trillium's general manager, will serve as president. New Water Partner Jason Neimark said his firm will help identify opportunities to expand Trillium's capacity and support its customers. Trillium was formerly backed by Canadian private equity firm Richardson Capital. Richardson acquired a majority stake in the business in 2005.
2 min read · 22 August 2018
Canada Infrastructure Bank has provided a $1.28 billion loan to help build the Réseau express métropolitain (REM) project in Montréal. The investment, the bank's first, wraps up the project's $6.3 billion financing. Construction of the 67-kilometre electric rail network began in April. The first trains are scheduled to run in 2021. CDPQ Infra, the infrastructure arm of Caisse de dépôt et placement du Québec, proposed the REM project in 2016. CDPQ Infra is providing $2.95 billion of the financing, giving it a stake of about 70 percent. Earlier this year, Canada Infrastructure Bank hired Pierre Lavallée from Canada Pension Plan Investment Board to be its president and CEO.
3 min read · 22 August 2018
Canadian private equity firm Bonnefield Financial has secured an additional $80 million in committed capital in the third close of its fourth farmland fund. The commitments, which came from new and existing limited partners, brings Bonnefield Canadian Farmland LP IV's total fundraising to date to $211 million. As a result, the Toronto-based firm now oversees more than $650 million across three funds. Bonnefield, founded in 2009 by President and CEO Tom Eisenhauer, provides land-lease financing to farmers to help them grow, reduce debt and manage succession events. The firm's portfolio currently reflects about 100,000 acres, operated by more than 100 farmers.
2 min read · 22 August 2018
