Even as venture investment in Canada is increasing, many of the country’s most promising tech companies face a funding gap at key points in their growth cycles, a new study found. A report released today by Yaletown Partners said late-stage tech companies often lack the capital to leverage initial commercial success and pursue emerging-growth strategies. This gap has reduced many innovative companies to bootstrapping their growth. The result is often slower expansion and delayed exits, typically at lower values, relative to competitors.
3 min read · 06 July 2016
EnerTech Capital has entered into a strategic partnership with the National Optics Institute (INO) in Québec City. INO is a developer of industrial optics and photonics solutions. The partnership between the organization and EnerTech will allow them to share knowledge and explore a range of new commercialization strategies for technologies in the energy space. EnerTech, an investor in energy and power sectors, has offices in Calgary, Toronto, Montréal and in the United States.
4 min read · 06 July 2016
Firethorn Capital Partners LP, the latest fund of Canadian private equity firm CAI Capital Management, has acquired Canadian Heating Products Inc and Montigo Del Ray Corp (CHP). No financial terms were disclosed. Langley, B.C.-based CHP is a manufacturer of residential and commercial gas fireplaces that are marketed and sold under the Montigo brand name. Firethorn bought the interest from CHP's Founder and President Dan Binzer, and plans to support the company in its pursuit of growth opportunities in North America. CHP is Firethorn's second investment since the fund's launch in late 2015. It previously invested in White House Design.
3 min read · 06 July 2016
Canadian private equity firm Novacap has sold Idaho Pacific Corp, a specialist in dehydrated potato products, to Arlon Group, a U.S. food and agriculture investment firm. The deal's financial terms were not released. Based in Ririe, Idaho, Idaho Pacific operates production facilities in its home state, Colorado and Prince Edward Island. It has been backed by Novacap's third industries fund since May 2011. Novacap said Idaho Pacific's new partnership with Arlon will help take the business to the next level in the North American market. In May, Novacap closed its fourth industries fund, Novacap Industries IV, at $470 million in committed capital.
2 min read · 06 July 2016
GuestLogix Inc (TSX: GXI) has agreed to sell its onboard retail technology business to a group of Canadian private equity investors for an undisclosed sum. Stornoway Portfolio Management, Bridgecorp Canada, Logan Peak Capital and Klass Capital Corp partnered in the deal, which resulted from a court-approved sale and investment solicitation process conducted under the Companies' Creditors Arrangement Act. Upon the deal's closing, Toronto-based GuestLogix will operate under its existing name and with an exclusive focus on its onboard business. Earlier this year, GuestLogix sold its affiliate OpenJaw Technologies Inc for about US$38.5 million.
5 min read · 06 July 2016
Canadian private equity firm Novacap has made a strategic investment in Syntax, a Montréal-based provider of hardware, software and cloud technology solutions to Canadian and U.S. businesses. No financial terms were disclosed. Novacap made the investment via its fourth technology fund Novacap TMT IV, which raised $375 million in May 2014, and in partnership with Syntax's senior management. The company said the investment will accelerate the growth of its cloud offerings and allow it "to grow into a major player within the North American market.” Founded in 1972, Syntax is led by CEOs and Co-Presidents Ryan Etinson and Kenny Etinson.
4 min read · 06 July 2016
U.S. private equity firm Kingswood Capital Management has acquired AVAD LLC, a North American distributor of audio and video solutions focused on the commercial and residential custom installation markets. No financial terms were disclosed. The deal included AVAD's Canadian subsidiary, AVAD Canada Ltd, which is based in Mississauga, Ontario. The parent organization has its headquarters in Sherman Oaks, California. Kingswood recruited consumer electronics and distribution industry executives to lead the acquired company.
3 min read · 05 July 2016
The Co-operators Group Ltd has made a "significant" investment in the second sustainable food fund of Canadian venture capital firm InvestEco Capital Corp. The size of the commitment and the amount targeted by InvestEco Sustainable Food Fund II were not disclosed. The fund, which is being marketed to accredited investors, will focus on expanding companies in North America that promote health and sustainability in the food and agricultural industry. The Co-operators is a Canadian co-operative insurance firm with more than $40 billion in assets under management. Earlier this year, InvestEco partnered in the financing of Mama Earth Organics.
3 min read · 05 July 2016
Building on the robust activity of the preceding quarter, the top 10 Canadian deals raised about $347 million in Q2
3 min read · 05 July 2016
Superior Plus Corp (TSX: SPB) has agreed to sell its construction products distribution (CPD) business to Foundation Building Materials LLC (FBM), a U.S. distributor of building materials. The deal is valued at about $420 million (US$325 million) and is expected to close in the second half of 2016. Toronto-based Superior said the sale will allow the company to reduce debt, increase its financial flexibility, and redeploy capital to its energy distribution and specialty chemicals businesses. Based in Tustin, California, FBM is backed by U.S. private equity firm Lone Star Funds. Lone Star acquired it late last year.
6 min read · 05 July 2016
