OMERS Infrastructure Management has bought an additional 4.36 percent interest in the holding company of Thames Water Utilities Ltd, a British provider of water and wastewater services, from Hermes Investment Management. No financial terms were released. OMERS Infrastructure, formerly Borealis Infrastructure, the infrastructure arm of the Ontario Municipal Employees Retirement System (OMERS), first invested in Thames Water earlier this year. The additional investment increases its stake to about 27 percent.
3 min read · 06 November 2017
The Kissner Group has agreed to acquire US Salt LLC, an Overland Park, Kansas-based bulk salt and specialty packaged salt producer. No financial terms were disclosed for the acquisition, which is expected to close this year. Cambridge, Ontario-based Kissner, which operates in the same industry, said the deal will create a comprehensive consumer and industrial salt franchise. US Salt is being sold by Crestwood Equity Partners. Kissner is backed by U.S. private equity firm Metalmark Capital and a vehicle held by Silverhawk Capital Partners and Demetree Salt LLC. Metalmark led the 2015 buy of Kissner from Canadian private equity firm TorQuest Partners.
3 min read · 06 November 2017
The technology group of Canadian private equity firm Novacap has made an undisclosed investment in Leading Edge Geomatics, a Lincoln, New Brunswick-based provider of end-to-end aerial lidar surveying services across North America. The deal is intended to support the company's expansion into new markets, strategic acquisitions, and continued R&D investment. Founders Bruce Hogan, Bill Kidman and Will Lowry, who launched Leading Edge in 2008, will continue to operate the business and hold a significant ownership stake. Leading Edge is the final platform investment of Novacap TMT IV. Earlier in 2017, Novacap raised $840 million in the close of Novacap TMT V.
3 min read · 06 November 2017
Acceleware Ltd (TSX-V: AXE), a Calgary provider of oil recovery technology and energy software solutions, has been awarded a $10 million non-repayable contribution from Sustainable Development Technology Canada (SDTC) and Emissions Reduction Alberta (ERA). The funds raised will be used to complete a commercial-scale field test of the company's clean technology for bitumen and heavy oil extraction. Acceleware plans to conduct the test in partnership with one or more oil sands producers. Founded in 2004, Acceleware is backed by Resource Merchant Capital, a Canadian energy private capital firm.
3 min read · 03 November 2017
Canadian specialty pharmaceutical company Cipher Pharmaceuticals Inc (TSX: CPH) has entered into a US$20 million senior secured term credit facility with Canadian Imperial Bank of Commerce. The proceeds will be used to repay the remaining balance on senior secured notes provided by Athyrium Capital Management, a U.S. healthcare investment firm. Athyrium in 2015 supplied Cipher with US$100 million in notes, used in part for the company's acquisition of Innocutis Holdings. Based in Mississauga, Ontario, Cipher is focused on the dermatology products market.
2 min read · 03 November 2017
BuildDirect, a Vancouver-based online marketplace for home improvement products, was this week granted creditor protection as it seeks to recapitalize or arrange a sales transaction, according to a report by the Canadian Press. Venture-backed BuildDirect has negotiated a US$15 million loan from investors to continue operations while it works on its financial restructuring, the report said. Vice President of Finance John Sotham was quoted as saying the company has generated significant revenue but has not been profitable. BuildDirect was founded in 1999 by President and CEO Jeff Booth and Executive Officer Robert Banks. Sotham reported the resignation of Booth last week.
1 min read · 03 November 2017
Canadian steel company Stelco Inc has priced its initial public offering on the Toronto Stock Exchange to raise gross proceeds of more than $200 million. Stelco has also granted to underwriters a greenshoe option that could generate an additional $30 million. Shares are expected to begin trading on November 3 under the symbol "STLC". Hamilton, Ontario-based Stelco earlier this year emerged from creditor protection and closed a restructuring deal with U.S. private equity firm Bedrock Industries Group. With the IPO's close, Bedrock is expected to hold 86.5 percent of the company’s outstanding shares, not including the greenshoe option.
3 min read · 03 November 2017
Canadian specialty finance firm Crown Capital Partners has created an affiliate to acquire the civil division of Calgary infrastructure specialist Petrowest Corp (TSX: PRW), whose assets are being sold following an application for receivership in August. The Crown affiliate has also bid to buy Petrowest's rental division. Additionally, Timber Pro Logging Ltd will buy Petrowest's Cutbank transportation division, while Century Services Corp has bid for most of its equipment. Crown said the combined proceeds of deals will likely range between $60 million to $70 million. It expects to recoup its $25 million of loans outstanding to Petrowest from asset sales and other interests.
3 min read · 03 November 2017
Canadian private equity firm Newlook Capital has partnered with Seth Corp in the acquisition of the La Prep Franchise System, the franchise system of La Prep, a Montréal-based bistro-style restaurant specializing in freshly prepared sandwiches, salads, baked goods and specialty coffees. Financial terms were not disclosed for the deal, which includes La Prep's Ontario Master Franchise and all 52 franchised Canadian locations, as well as Seth's brand, Chaska Indian Street Food. Newlook's investment, made through New Taste Partners, will support La Prep's and Chaska's pursuit of new opportunities in the quick service restaurant sector.
2 min read · 02 November 2017
Canadian retailer Hudson’s Bay Co (TSX: HBC) has responded to criticism from Land & Buildings Investment Management about its recent deals, including the sale of a stake to U.S. private equity firm Rhône Capital for US$500 million. HBC said the Rhône sale, which is "interconnected" with the US$850 million sale of the Lord & Taylor Fifth Avenue building, is not a control investment, as alleged. Rhône's buy of convertible preferred shares will instead give it a voting and equity interest of 21.5 percent (or about 30 percent if the shares are held for eight years). HBC urged Land & Buildings, a U.S. hedge fund, to "stop misleading our shareholders."
4 min read · 02 November 2017
