Private Equity
U.S. private equity firm Clayton Dubilier & Rice has agreed to buy $500 million in convertible preferred shares in CHC Group Ltd (NYSE: HELI), a Vancouver provider of offshore flying services to the oil and gas industry. CHC also will pursue a $100 million rights offering of the shares to existing investors, with the aim of raising $600 million in total. Prior to the rights offering, Clayton Dubilier will take a 45 percent ownership stake in the company. U.S. private equity firm First Reserve Corp, which bought CHC in 2008 for around $1.5 billion, will retain an interest of around 29 percent. The company, which went public in early 2014, said it would use the new funds primarily to reduce debt.
10 min read · 22 August 2014
ONCAP, the mid-market private equity investment arm of Onex Corp, has closed its sale of Mister Car Wash to U.S. private equity firm Leonard Green & Partners, as previously reported by peHUB Canada. ONCAP received net proceeds of US$423 million from its investment, which represents a gross multiple of capital invested of about 8.1 times and a gross IRR of 36 percent. Onex received net proceeds of US$153 million from the sale. Mister Car Wash is a Tucson, Arizona-based operator of car washes and lube centers in regional markets across the United States.
2 min read · 22 August 2014
John Ruffolo, CEO of OMERS Ventures, the venture investment arm of the Ontario Municipal Employees Retirement System, has been selected for the top spot of Canadian Business magazine's 50 most powerful business people. The magazine said that Ruffolo's launch of OMERS Ventures in 2011 has provided "a fix to Canada’s chronic lack of VC," which is something that should matter "as much to Bay Street as it does to entrepreneurs."
2 min read · 21 August 2014
Corsa Coal Corp (TSX-V: CSO) has closed its previously announced buy of U.S.-based PBS Coals Ltd for US$60 million. The deal was facilitated by a US$33.4 million investment by Canadian private equity firm Sprott Resource Corp, giving it 19.9 percent of Corsa's outstanding shares. Other investors included U.S. private equity firm Quintana Capital Group, while Sprott Resource Lending Corp and other lenders assisted with the acquisition's funding. Based in Toronto, Corsa is focused on mining, processing and selling metallurgical and thermal coal. Concurrent with the transaction, the company appointed Quintana's George Dethlefsen as CEO.
10 min read · 20 August 2014
FreshGrade has secured $4.3 million in seed-stage financing. The backers of the round were a mix of U.S. venture capital firms and education investors, including NewSchools Venture Fund, Emerson Collective, Accel Partners and The Social+Capital Partnership. Based in Kelowna, British Columbia, the company is an educational resource for administrators, teachers and parents allowing for maximum classroom engagement and real-time assessment. Update: FreshGrade was founded in 2011 by Lane Merrifield, Steve Wandler and Mark Payne.
4 min read · 15 August 2014
ONCAP, the mid-market platform of Canadian private equity Onex Corp, has confirmed plans to sell U.S. car wash chain Mister Car Wash. A second quarter financial statement by Onex did not specify the buyer, but earlier reports have indicated it will be U.S. private equity firm Leonard Green & Partners. ONCAP is likely to take home approximately US$380 million in net proceeds from the deal. This translates into a gross multiple of capital invested of about 8x and a gross IRR of 36 percent.
2 min read · 13 August 2014
There is a new Canadian technology investor in town. Gibraltar Ventures, a Toronto-based firm that is seeking to bring disruptive technology solutions to consumers and small to medium-sized businesses, this week completed the initial close of its first $50 million fund, Gibraltar Ventures Fund One LP. Backers of the fund included BDC Capital. Gibraltar has also made its first investment, leading the $5.2 million Series A financing of online tickets marketplace FanXchange.
4 min read · 12 August 2014
The founder of yoga gear retailer Lululemon Athletica Inc (NASDAQ: LULU), Dennis "Chip" Wilson, has sold about 50 percent of his interest in the company for US$845 million. The buyer is former Lululemon investor U.S. private equity firm Advent International. The sale, which has received the support of the company's board of directors, represents about 13.85 percent of Lululemon's shares. With the deal's closing, Lululemon will expand its board to 12 members to include Advent's David Mussafer and Steven Collins. Advent and Highland Capital Partners invested in the Vancouver's Lululemon in 2005. Advent exited after the company went public in 2007.
7 min read · 08 August 2014
PharmaCan Capital, a merchant bank that invests in global medical and legal marijuana markets, has completed a brokered private placement financing of common shares. The qualifying transaction is in connection to a proposed combination with capital pool company Searchtech Ventures Inc (TSXV: MJN) that will provide PharmaCan with a public listing. To date, PharmaCan has raised $12.9 million in proceeds. The Toronto-based merchant bank said it has made investments in several companies that are either licensed to produce medical marijuana or are in the process of seeking a license.
4 min read · 06 August 2014
Fluidware Corp, an Ottawa-based provider of online survey and application review tools, has been bought for an undisclosed sum by SurveyMonkey. Fluidware's headquarters and infrastructure will be maintained to help accelerate and scale the development of SurveyMonkey's online survey platform, the company said. Based in Palo Alto, California, SurveyMonkey has been backed by a mix of private equity and venture capital firms. In 2013, the company raised US$800 million in debt and equity. The deal's investors included Tiger Global Management, Google Inc, ICONIQ Capital, Social+Capital Partnership and Laurel Crown Partners.
3 min read · 06 August 2014
